A house was listed for $249,999. The buyers offered $225,000, the sellers countered
with $235,000, which the buyers accepted. The buyers are making a down payment of
20% and financing the rest at 5.25% for 30 years. How much will their monthly
principal and interest payment be?
$1,039.64
$1,106.99
$1,244.50
$1,299.50
Give this one a try later!
$1,039.64
$235,000 purchase price × 80% or .80 (portion borrowed) = $188,000
mortgage amount
, 188 (thousands borrowed) × $5.53 (monthlypayment per thousand) =
$1,039.64 (seeFigure 14.4)
The sellers receive two offers for their property at the same time. The first buyers offer
$95,000 all cash. The second buyers offer $100,000 subject to obtaining a
conventional mortgage loan with 20% down payment and ask the sellers to pay three
points to their lending institution. The sellers decide to accept the all-cash offer. If
they had accepted the second buyers' offer instead, they would have received
$2,600 more at closing.
$2,000 more at closing.
$2,400 less at closing.
$3,000 less at closing.
Give this one a try later!
$2,600 more at closing
$80,000 × 3% = $80,000 × 0.03 = $2,400 payment for points
$100,000 - $95,000 = $5,000 received with the higher offer
$5,000 - $2,400 payment for points = $2,600 realized with the higher offer
after payment of points
An investor bought a building lot for $45,000 and sold it two years later for a 15%
profit. How much did it sell for?
$51,750
$52,941
, $54,450
$58,500
Give this one a try later!
$51,750
$45,000 + 15% of $45,000 = $51,750 (or $45,000× 1.15 = $51,750)
A first-time buyer is purchasing a home for $129,500. His lender requires a 20% down
payment and 2 points at closing. In addition, the buyer has $750 in closing costs. What
is the total amount he needs to close?
$25,900
$28,490
$28,722
$29,240
Give this one a try later!
$28,722
$129,500 × 0.80 = $103,600 mortgage loan x 0.02 = $2,072 in points +
$129,500 × 0.20 =$25,900 down payment + $750 closing costs =$28,722
Happy Valley Realty recently sold a home for $79,500. The broker charged the sellers
a 6½% commission and paid 30% of that amount to the listing salesperson and 25% to
the selling salesperson. What amount of commission did the listing salesperson
receive from the sale of this home?
with $235,000, which the buyers accepted. The buyers are making a down payment of
20% and financing the rest at 5.25% for 30 years. How much will their monthly
principal and interest payment be?
$1,039.64
$1,106.99
$1,244.50
$1,299.50
Give this one a try later!
$1,039.64
$235,000 purchase price × 80% or .80 (portion borrowed) = $188,000
mortgage amount
, 188 (thousands borrowed) × $5.53 (monthlypayment per thousand) =
$1,039.64 (seeFigure 14.4)
The sellers receive two offers for their property at the same time. The first buyers offer
$95,000 all cash. The second buyers offer $100,000 subject to obtaining a
conventional mortgage loan with 20% down payment and ask the sellers to pay three
points to their lending institution. The sellers decide to accept the all-cash offer. If
they had accepted the second buyers' offer instead, they would have received
$2,600 more at closing.
$2,000 more at closing.
$2,400 less at closing.
$3,000 less at closing.
Give this one a try later!
$2,600 more at closing
$80,000 × 3% = $80,000 × 0.03 = $2,400 payment for points
$100,000 - $95,000 = $5,000 received with the higher offer
$5,000 - $2,400 payment for points = $2,600 realized with the higher offer
after payment of points
An investor bought a building lot for $45,000 and sold it two years later for a 15%
profit. How much did it sell for?
$51,750
$52,941
, $54,450
$58,500
Give this one a try later!
$51,750
$45,000 + 15% of $45,000 = $51,750 (or $45,000× 1.15 = $51,750)
A first-time buyer is purchasing a home for $129,500. His lender requires a 20% down
payment and 2 points at closing. In addition, the buyer has $750 in closing costs. What
is the total amount he needs to close?
$25,900
$28,490
$28,722
$29,240
Give this one a try later!
$28,722
$129,500 × 0.80 = $103,600 mortgage loan x 0.02 = $2,072 in points +
$129,500 × 0.20 =$25,900 down payment + $750 closing costs =$28,722
Happy Valley Realty recently sold a home for $79,500. The broker charged the sellers
a 6½% commission and paid 30% of that amount to the listing salesperson and 25% to
the selling salesperson. What amount of commission did the listing salesperson
receive from the sale of this home?
