A house is selling for $180,000. A deposit of $10,000 was made when the sales contract was signed. The down payment is 25% and the balance will be financed with a 25-year mortgage at 8% and 3 discount points. If the sellers are responsible for the broker's commission (5% of the purchase price); $1,750 in other closing costs; and the existing mortgage with a balance of $50,000; what proceeds will they receive on the sale of the property? A. $109,750.00 B. $113,850.00 C. $119,250.00 D. $122,850.00
A house is selling for $180,000. A deposit of $10,000 was made when the sales contract was signed. The down payment is 25% and the balance will be financed with a 25-year mortgage at 8% and 3 discount points. If the sellers are responsible for the broker's commission (5% of the purchase price); $1,750 in other closing costs; and the existing mortgage with a balance of $50,000; what proceeds will they receive on the sale of the property? A. $109,750.00 B. $113,850.00 C. $119,250.00 D. $122,850.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A house is selling for $180,000. A deposit of $10,000 was made when the sales contract was signed. The down payment is 25% and the balance will be financed with a 25-year mortgage at 8% and 3 discount points. If the sellers are responsible for the broker's commission (5% of the purchase price); $1,750 in other closing costs; and the existing mortgage with a balance of $50,000; what proceeds will they receive on the sale of the property?
A. $109,750.00
B. $113,850.00
C. $119,250.00
D. $122,850.00
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