math

Sharon only had $6,500 in cash.

The house lot cost $65 per front foot of fifty feet and the house cost was $108,280.

She was approved for a mortgage for the balance.

If her interest was 5% annual interest, payable semi-annually, what was the amount of the first semi-annual interest payment ?

The answers, along with the corresponing solutions, will be posted at the bottom of the page below the wildlife photo. Please take your time.

wildlife

 

A. $2625.75

Let's find out what the cost of the home is per front foot by multiplying 50 time $65.

We get $3250.

Now let's add the cost of the home, $108,280, to the cost of the home per front foot by adding 108280 and 3250 and we get $111,530, which is the total cost of the home.

Now let's subtract Sharon's cash applied towards the purchase of the home, $6500, from the total cost of $111,530 and we now get a balance of $105,030, which is the amount Sharon is financing.

Next, let's find out what the annual interest rate of 5% on the loan balance will amount to and we find that the interest will be $5251.50 for the first year.

If Sharon is going to pay the interest semi-annually her first payment will be $5251.50 divided by 12 times six which equals $2625.75 for the first semi-annual payment.

We're not monkeying around here !

 

Earth

Watch live streaming video from davidsaks at livestream.com

David Saks

Content Protected © 2013   
Subscribe To David's Blog    
Add David as an Associate

 
Posted by David Saks on 11/09/2008 12:45 AM   Comments (0)   Real Estate Math in the ActiveRain Channel   real estate math  
Generate short URL
This post has been included in Tennessee Real Estate News
Post is included in group: Education
Post is included in group: Mathematics

0 Comments on Real Estate Math Class : Lesson 106

Comments have been disabled by the author
 
Dsupload Rainmaker_large

David Saks

Broker

Memphis, TN

More about me…

The Real Estate Mart of Tennessee, Inc.

Address: 4040 North Watkins, Suite #4, Memphis, TN, 38127

Office Phone: (901) 357-4663

Cell Phone: (901) 217-4114

Email Me

Join ActiveRain

Legal Disclaimer:

The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until convicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.

Photos © & Licensed by Nova Development

Content Protected © 2013   


Subscribe To David's Blog    
Add David as an Associate

Before you even think about committing a real estate crime click the red button.
Real Estate Crimes



Listings

Links

Archives

RSS 2.0 Feed for this blog

Find TN real estate agents and Memphis real estate on ActiveRain.