The Roths bought a house for$438,700. They paid the sellers a 20% down payment and obtained a
Question:
The Roths bought a house for$438,700. 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$8,553.05; of these fees,$6,320.43were 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. $
International Financial Reporting and Analysis
ISBN: 978-1408075012
5th edition
Authors: David Alexander, Anne Britton, Ann Jorissen