Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Roths bought a house for $ 4 3 7 , 8 0 0 . They paid the sellers a 2 0 % down payment

The Roths bought a house for $437,800. 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 478% 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 $8,535.50; of these fees, $6,307.47 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. (Round your answer to the nearest cent.)
$
(f) Find the total finance charge. (Round your answer to the nearest cent.)
$
(g) Find the amount that the sellers are paid for their house.
$
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook Of Key Global Financial Markets Institutions And Infrastructure

Authors: Gerard Caprio

1st Edition

0123978734, 9780123978738

More Books

Students also viewed these Finance questions

Question

Describe the responsibility reporting for a cost center.

Answered: 1 week ago

Question

Why We Listen?

Answered: 1 week ago