The Roths bought a house for $438,500. 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 and 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 $8,549.15; of these fees, $6,317.55 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.
The Roths bought a house for $438,500. 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 and 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 $8,549.15; of these fees, $6,317.55 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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