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Updated on: 29 Jan 2024, 19:19
Originally posted by Sajjad1994 on 02 Apr 2023, 08:00.
Last edited by chetan2u on 29 Jan 2024, 19:19, edited 3 times in total.
Last edited by chetan2u on 29 Jan 2024, 19:19, edited 3 times in total.
Edited
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I have excellent news. The owners have accepted your bid of $179,000! You close on your new home in 30 days. Call me back soon and we will work out the details.
The late payment fee assessed by the mortgage company is approximately 2% of the total mortgage payment.: Yes
The previous owners were asking more than $179,000 for their property.: No
Making double payments on the principal in the first year would mean paying an extra $265 per month.: No
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
65%
(hard)
Question Stats:
50% (03:17) correct
50%
(03:20)
wrong
based on 806
sessions
History
Date
Time
Result
Not Attempted Yet
1. Consider each of the following statements. Does the information in the three sources support the inference as stated?
| Yes | No | |
| The late payment fee assessed by the mortgage company is approximately 2% of the total mortgage payment. | ||
| The previous owners were asking more than $179,000 for their property. | ||
| Making double payments on the principal in the first year would mean paying an extra $265 per month. |
ShowHide Answer
Official Answer
The late payment fee assessed by the mortgage company is approximately 2% of the total mortgage payment.: Yes
The previous owners were asking more than $179,000 for their property.: No
Making double payments on the principal in the first year would mean paying an extra $265 per month.: No
$29,000
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
45%
(medium)
Question Stats:
59% (01:36) correct
41%
(01:54)
wrong
based on 608
sessions
History
Date
Time
Result
Not Attempted Yet
2. If the information contained in all three sources is correct and the first payment on the loan was made in January 2016, the down payment made on the purchase of the home was closest to:
| $17,900 | |
| $21,600 | |
| $23,400 | |
| $29,000 | |
| $35,200 |
ShowHide Answer
Official Answer
$29,000
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02 Apr 2023, 08:39
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The late payment fee assessed by the mortgage company is 2% of the total mortgage payment
late payment fee is $999.16 and its 2% is ~ $979 true
The previous owners were asking more than $179,000 for their property
No information given in the passage
Making double payments on the principal in the first year would mean paying an extra $265 per month
no ; first year principal is $2008.95 ; per month principal $167.41
not be $265
If the information contained in all three sources is correct and the first payment on the loan was made in January 2016, the down payment made on the purchase of the home was closest to:
A. $17,900
B. $21,600
C. $23,400
D. $29,000
E. $35,200
cost of home $179000
total amount to be paid in interest + principal $148000
∆ amount $31,000
of which in January 2016 first payment amount $978.79
net down payment will be ~ $29,000
option D
late payment fee is $999.16 and its 2% is ~ $979 true
The previous owners were asking more than $179,000 for their property
No information given in the passage
Making double payments on the principal in the first year would mean paying an extra $265 per month
no ; first year principal is $2008.95 ; per month principal $167.41
not be $265
If the information contained in all three sources is correct and the first payment on the loan was made in January 2016, the down payment made on the purchase of the home was closest to:
A. $17,900
B. $21,600
C. $23,400
D. $29,000
E. $35,200
cost of home $179000
total amount to be paid in interest + principal $148000
∆ amount $31,000
of which in January 2016 first payment amount $978.79
net down payment will be ~ $29,000
option D
Sajjad1994
02 Apr 2023, 10:25
Kudos
Bookmarks
Sajjad1994 - Tough one. Had some doubt tho. Would the exam tell us what 'Escrow payment' etcc is usually?
Solution:
IMO
1. YES ll NO ll NO
2. D. $29,000
1. (a) Late fee is 999.16 and payment of Jan 2016 is 978.79.
Hence, late amount is the different ie., 20.3
Which is approx. 2 % of 978.8 Hence Yes.
1. (b) Was a bit skeptical but since we concretely cannot say if previous owner asked for more.
There may be 3 cases
- Bid was higher than what was asked for
- Bid was lower than what was asked for
- There was no ask from the owner? And they just bid 179k??
Hence no
1. (c) 2008.95 being the Principal for 2016. ie 167.4 per month. Hence it would not be 265$ more per month but 167
2. Looking at Table 2. If we substract total interest paid from total of 360 payments, we get $150k.
Hence down payment was $29k
Solution:
IMO
1. YES ll NO ll NO
2. D. $29,000
1. (a) Late fee is 999.16 and payment of Jan 2016 is 978.79.
Hence, late amount is the different ie., 20.3
Which is approx. 2 % of 978.8 Hence Yes.
1. (b) Was a bit skeptical but since we concretely cannot say if previous owner asked for more.
There may be 3 cases
- Bid was higher than what was asked for
- Bid was lower than what was asked for
- There was no ask from the owner? And they just bid 179k??
Hence no
1. (c) 2008.95 being the Principal for 2016. ie 167.4 per month. Hence it would not be 265$ more per month but 167
2. Looking at Table 2. If we substract total interest paid from total of 360 payments, we get $150k.
Hence down payment was $29k
