A House Is Sold with an Assumable $156,000 Below-Market Loan

Multiple Choice

A house is sold with an assumable $156,000 below-market loan at 8.5% for a remaining term of 15 years.Current rates are 9.75% for 15 year mortgages.If the house sold for $240,000,what is the cash-equivalent value of the house.

A) $250,834.82
B) $229,165.18
C) $260,660.40
D) $219,339.60