GEN COMBO PERSONAL FINANCE; CONNECT ACCESS CARD
GEN COMBO PERSONAL FINANCE; CONNECT ACCESS CARD
12th Edition
ISBN: 9781260044416
Author: Jack R. Kapoor, Les R. Dlabay Professor, Robert J. Hughes
Publisher: McGraw-Hill Education
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Chapter 17, Problem 1FPC
Summary Introduction

Case summary:

A person named R received a letter. The letter asked him to participate in a free lithograph of some famous artist. He was asked to return a postcard with her name address and phone number. He sent the postcard. After sometime a person called and asked him to tell his credit card number. After some time the caller asked him to purchase one piece of it while promising that it is of limited edition, excellent work of a famous artist and much more. Caller further even said that artist is going to die in near future and the value of art work is going to increase and they are ready to purchase the art work at three or four times the price when the artist dies. Caller also told him that he will receive the certificate of authenticity and he can also sell it somewhere else for good profit. They are also giving him the 30 day money back guarantee.

Character in this case: R.

Adequate information: 30 day money back guarantee.

To determine: Whether this offer seems genuine or not.

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4. On August 20, Mr. and Mrs. Cleaver decided to buy a property from Mr. and Mrs. Ward for $105,000. On August 30, Mr. and Mrs. Cleaver obtained a loan commitment from OKAY National Bank for an $84,000 conventional loan at 5 percent for 30 years. The lender informs Mr. and Mrs. Cleaver that a $2,100 loan origination fee will be required to obtain the loan. The loan closing is to take place September 22. In addition, escrow accounts will be required for all prorated property taxes and hazard insurance; however, no mortgage insurance is necessary. The buyer will also pay a full year's premium for hazard insurance to Rock of Gibraltar Insurance Company. A breakdown of expected settlement costs, provided by OKAY National Bank when Mr. and Mrs. Cleaver inspect the uniform settlement statement as required under RESPA on September 21, is as follows: I. Transactions between buyer-borrower and third parties: a. Recording fees--mortgage b. Real estate transfer tax c. Recording fees/document…
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