Concept explainers
The Roschunis bought a house for
a. the Roschunis’s monthly payment
b. the
c. the total finance charge
d. the amount that the sellers are paid for their house.
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Chapter 5 Solutions
EBK MATHEMATICS: A PRACTICAL ODYSSEY
- The Roths bought a house for $435,400. They paid the sellers a 20% down payment and obtained a simple interest amortized loan for the balance from their bank for the remainder, at 4 7/8% for thirty years. The bank in turn paid the sellers the loan amount, less a 6% sales commission paid to the sellers' and buyers' real estate agents. The bank charged them 2 points plus fees totaling $8,488.71; of these fees, $6,272.89 were included in the finance charge. (a) Find the loan amount. (b) Find the "legal loan amount" -the amount borrowed, according to the Truth in Lending Act. (Round your answer to the nearest cent.) (c) Find the Roth's monthly payment. (Round your answer to the nearest cent.) (d) Find the APR (round to the nearest hundredth of 1%). % (e) Find the total interest paid. (f) Find the total finance charge. (g) Find the amount that the sellers are paid for their house.arrow_forwardA businessman needs P50,000 for his operations. One financial institution is willing to lend him the money for 14% with the principal and the interest payable at the end of the year. A second financier is willing to lend him P50,000 payable in 12 equal monthly instalments of P4,600 each. Which offer is best for him?arrow_forwardHui purchased a 91-day T-Bill that has a face value of $1000 and an interest rate of 4.00% p.a. a. Calculate the purchase price of the T-Bill. Round to the nearest cent b. In 25 days, she needed the money and therefore, sold the T-bill to another investor. The rate for this investment in the market was 6.50% at the time of the sale. Calculate his selling price. Round to the nearest cent SAVE PROGRESS -3°Carrow_forward