Question

QUESTION 45 A property recently sold for $300,000 with a 20 percent down payment. The seller financed the property at 2.5 percent for 30 years with monthly payments. At the time of the sale, market interest rates were 4.5 percent. What is the cash equivalent purchase price? $209,000 $225,000 247,100 300,000 QUESTION 46 Which of the following is a necessary characteristic in order to obtain a Virginia Real Estate license? Truthfulness Honesty Fair dealing All of the choices

Answer 1

45)

PV of loan payments Px[1-1=(1+r)^n)]=r Here, A Interest rate per annum B Number of years C| Number of compoundings per per annum A:C Interest rate per period (r) BxC Number of periods (n) Payment per period (P) 4.50% 30 12 0.38% 360 948.29 |=PMT(2.5%/12,30*12,-300000*(1-20%),0,0) PV of loan payments 187,156 948.29×(1-(1:(1+0.38%)^360))=0.38% Purchase price 247,156 =187156+300000* 20% Hence, correct option is "247,100"

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