Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman

Exercise 62

Adam Marsh is purchasing a $134,000 condominium apartment. The down payment is 20%, and the balance will be financed with a 20-year fixed-rate mortgage at 8.75% and 3 discount points. The annual property tax is $1,940, and the hazard insurance premium is $1,460. When Adam signed the original sales contract, he put down a deposit of $10,000, which will be credited to his down payment. In addition, at the time of closing, he must pay the following expenses:

As Adam's real estate agent, he has asked you the following questions:
a. What is the total monthly PITI of the mortgage loan?
b. What is the total amount of interest that Adam will pay on the loan?
c. How much is due at the time of the closing?
d. If the sellers are responsible for the 6% broker's commission, $900 in closing costs, and the existing first mortgage with a balance of $45,000, what proceeds will be received on the sale of the property?