Chapter 5.5, Problem 5E

The Roths bought a house for $\$432,500$. 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 $4\frac{7}{8}\%$ for $thirtyyears$. The bank in turn paid the sellers the loan amount, less a $6\%$ sales commission paid to the sellers’ and the buyers’ real estate agents. The bank charged them $2$ points plus fees totaling $\$8,432.17$; of these fees, $\$6,231.11$ were included in the finance charge. Find:

a. the loan amount

b. the “legal loan amount”-the amount borrowed, according to the Truth in Lending Act

c. the Roth’s monthly payment

d. the $APR$ (round to the nearest hundredth of $1\%$)

e. the total interest paid

f. the total finance charge

g. the amount that the sellers are paid for their house.