Explore BrainMass

Explore BrainMass

    Mathematics in Finance - Buying and Selling a House

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The Zambrano family bought a house for $91,000. They paid $20,000 down and took out a 30-year mortgage for the balance at 9%.
    a. Find their monthly payment.
    b. How much of the first payment is interest?

    After 180 payments, the family sells its house for $136,000. They must pay closing costs of $3700 plus 2.5% of the sale price.
    c. Estimate the current mortgage balance at the time of the sale
    d. Find the total closing costs.
    e. Find the amount of money they receive from the sale after paying off the mortgage.

    © BrainMass Inc. brainmass.com June 3, 2020, 8:07 pm ad1c9bdddf

    Solution Preview

    a. Find their monthly payment.

    We need to find the amount to be mortgage first.
    91,000 - 20,000 = 71,000

    PVA = W x 1 - 1 where PVA is the present value of loan
    (1 + i)n W is the ...

    Solution Summary

    This solution is comprised of a detailed explanation and calculation to answer the monthly payment, mortgage balance, and total closing costs.