Question

1. A seller's 1-year insurance policy costs $175 for the term ending July 31. The seller must pay for the insurance through March 17. Compute the amount of money owed by the buyer on a 30-day-per-month basis.

2. A broker pays his salespeople 10% of the commission for listing a property and 50% of the balance of the commission for selling it. If the broker's commission is 6% of the sale price, and the salesperson received $2,640 for both listing and selling a property, what was the sale price?

3. A buyer is assuming the balance of a seller's present mortgage of $18,450 bearing 8% interest payable in advance. The last payment was made April 1 and included $123 interest in advance for the month of April. Compute the interest proration if the buyer is liable for interest commencing April 18.

Answer 1

1) August to March 2017 is 7 months

175/7 = 25

So, per month amount 25

2) For listing 10 percent and 50 percent of commission is 5 percent.so, total commission is 15 percent.

15 is 2460 so , 100 is 16400 dollar total commission

So, 16400 is 6 percent so 100 is 273,333.33

Total sale price is here 273,333.33

3) 18450-123= 18327

8 percent of 18327 is 1466.6