Question

1. A $42,000 loan at 8% interest was repaid in 6 months. What was the total amount repaid?

2. A seller paid $32,000.00 for a residence. The seller wants to list it at a 20% profit after paying the broker at 5% commission. What is the listing price?

3. A house is assessed at 30% of its value of $50,000.00. Taxes for the calendar year were levied at the rate of 9 mills for city, 10 mills for county, and 12 mills for schools. Taxes will be due October 1. What is the seller's share of the proration on the settlement date of May 31?

4. An $89,500 investment shows annual net earnings of 10.5%. What is the monthly return?

Answer 1

Answer:

1. A $42,000 loan at 8% interest was repaid in 6 months. What was the total amount repaid?

total amount repaid = $ 42,000 + ( $ 42,000 x 8% x (6months/ 12months) = $ 42,000 + $ 1,680 = $ 43,680  

2. A seller paid $32,000.00 for a residence. The seller wants to list it at a 20% profit after paying the broker at 5% commission. What is the listing price?

Let Listing Price be 'A'

A= $ 32,000.00 + Profit ( $ 32,000.00 x 20% ) + Brokerage ( 5% X A)

A = $ 32,000.00 + $ 6,400 + $ 0.05 A

0.95 A = $ 38400

A =  $ 38400 / 0.95

A = $ 40,421.05 Say $ 40, 421

Listing Price be $ 40,421

3. A house is assessed at 30% of its value of $50,000.00. Taxes for the calendar year were levied at the rate of 9 mills for city, 10 mills for county, and 12 mills for schools. Taxes will be due October 1. What is the seller's share of the proration on the settlement date of May 31?

Taxes If house is situated :

City = $50,000.00 ( Assessed Value ) x 30% x 0.09 = $ 1,350

County = $50,000.00 ( Assessed Value ) x 30% x 0.10 = $ 1,500

Schools = $50,000.00 ( Assessed Value ) x 30% x 0.12 = $ $ 1,800

seller's share of the proration on the settlement date of May 31:

As the Taxes will be due October 1 means period for taxes for 1 year be from 1 october to 30 september.

Here, the settlement date is May 31. We say 8 months or 243 days period , for such period seller is liable to pay taxes.

seller's share of the proration on the settlement date of May 31:

City =  

In months = $ 1,350 X 8 months / 12 months = $ 900

In days =  $ 1,350 x 243 days / 365 days = $ 898.77

County =

In months = $ 1,500 X 8 months / 12 months = $1,000

In days =  $ 1,500x 243 days / 365 days = $ 998.63

Schools =

In months = $ 1,800 X 8 months / 12 months = $ 1,200

In days =  $ 1,800 x 243 days / 365 days = $ 1,198.36

4. An $89,500 investment shows annual net earnings of 10.5%. What is the monthly return?

monthly return = ($89,500 x 10.5%) / 12 months = $ 783.125

or say 0.875% per month ( $ 783.125/ 89500 x 100 )