# Real Estate Math Class : Lesson 106

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.

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 !

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