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Need Formaula help for Discounting a Partially Amortized Loan: I am as seller, unable to sell my waterfront cottage, will consider an STB for $180,000 at 6% amortized over 25 years. I feel this strategy will make my property more saleable and attract potential buyers. Financing through traditional sources is extremely difficult given the property’s distant location, unique design, age, lack of services and limited market appeal. I plan to sell the mortgage prior to closing, but needs a cost estimate concerning the discount. A local mortgage broker advises me that a private investor knowledgeable in that particular cottage area would seriously consider the mortgage, but requires an 11% yield. To establish what the potential lender will pay (present value based on 11% yield), the mortgage must be discounted at 11%. In other words, the face amount must be reduced in order to increase the overall return from 6% to 11%. Scenario 2: Assume that the my mortgage was based on a 5-year term, with the investor’s yield expectation remaining the same. The cost of sale would be reduced significantly given a balloon payment at end-of-year five (EOY 5). The outstanding balance at the end of year five is $161,706.07. Alter the amortization of the mortgage to 60 payments (five years) Please provide a maths formula for the present value calculated is $147,933.18 with my cost now at $32,066.82 (180,000– 147,933.18). If I had limited the term to two years, the present value would rise further to $164,679.43 with Seller cost at $15,320.57 (180,000–164,679.43). I don't know how my HP is calculating PV as present value calculated is $147,933.18, any idea , please guide me via formulas and hints. I love to have formulas. Thanks