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
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
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Transcribed Image Text: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.
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