Question
The Roths bought a house for $433,100. They paid the sellers a 20% down payment and obtained a simple interest amortized loan for the balance
The Roths bought a house for $433,100. 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 4.875 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 $8,443.87; of these fees, $6,239.75 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.
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