solved:A developer is offering loans on new properties at 9% for 2

  

A developer is offering loans on new properties at 9% for 25… A developer is offering loans on new properties at 9% for 25 years.However, her currentrequired rate of return for the project is 9.5%.The property would normally sell for$110,000 without any special financing and 100% LTV loana. At what price should the builder sell the properties to earn, in effect the requiredrate of return on the loan?Assume that the builder would have the loan for theentire term of 25 years b. How would the answer change in (a) if the property is expected to be sold after 10 years and the loan repaidBusinessFinance FIRE FIRE-435