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I need help; 11 5 points...

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Accounting

I need help;
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11 5 points Dane Brooksher is selling his house for $525,000, When comparing this price to other very similar homes in the neighborhood, $495,000 seems to be more in line with the fair market value of Dane's home. Upon further inquiry, you learn that Dane can seller-finance his home to you at an interest rate of 7.25% with one discount point, using a 30-year constant payment foxed rate mortgage with monthly payments, whereas if you finance the needed loan through your local bank, it would be offered at 8% with $1,390 in loan origination fees. Both Dane and your local bank want a 20% down payment. Assume you plan to own the home for 20 years and have an opportunity cost of capital equal to 5.75% Calculate the net present value to seller financing when getting the loan through Dane instead of your local lender. -$9,846.41 -$7.926.27 $4,477.97 -$1,858.45 $5,781.63 $11.842.01 $14,739.92

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