Chapter 5.1, Problem 42E

George and Peggy Fulwider bought a house from Sally Sinclair for $\$233,500$. In lieu of a $10\%$ down payment, Ms. Sinclair accepted $5\%$ down at the time of the sale and a promissory note from the Fulwiders for the remaining $5\%$, due in four years. The Fulwiders also agreed to make monthly interest payments to Ms Sinclair at $10\%$ interest until the note expires. The Fulwiders obtained a loan from their bank for the remaining $90\%$ of the purchase price. The bank in turn paid the sellers the remaining $90\%$ of the purchase price, less a sales commission of $6\%$ of the purchase price, paid to the sellers’ and the buyers’ real estate agents.

a. Find the Fulwidrs’ down payment.

b. Find the amount that the Fulwiders borrowed from their bank.

c. Find the amount that the Fulwiders borrowed from Ms. Sinclair.

d. Find the Fulwider’s monthly interest-only payment to Ms. Sinclair.

e. Find Ms. Sinclair’s total income from all aspects of the down payment (including the down payment, the amount borrowed under the promissory note, and the monthly payments required by the promissory note).

f. Find Ms. Sinclair’s net income from the Fulwiders’ bank.

g. Find Ms. Sinclair’s total income from all aspects of the sale.