Voice Mail from Real Estate Agent: I have excellent news. The owners h

Question

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.https://gmatclub.com/forum/download/file.php?mode=view&id=70709https://gmatclub.com/forum/download/file.php?mode=view&id=70710 4.jpg 3.jpg

Archit3110 · Answer

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

RahulJain293 · Answer

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

2. Looking at Table 2. If we substract total interest paid from total of 360 payments, we get $150k.
Hence down payment was $29k

ZeeLove · Answer

1. Consider each of the following statements. Does the information in the three sources support the inference as stated?

Yes No Statements
The late payment fee assessed by the mortgage company is 2% of the total mortgage payment. 
YES, the information support the inference

The previous owners were asking more than $179,000 for their property.
NO, the information do not support the inference

Making double payments on the principal in the first year would mean paying an extra $265 per month.
NO, the information do not support the inference

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:

A. $17,900
B. $21,600
C. $23,400
D. $29,000
E. $35,200

$273,610.80-$123,610.80 =$150,000
$179000-$150,000= $29,000 (D)

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rn1112 · Answer

1. Consider each of the following statements. Does the information in the three sources support the inference as stated? 
 
 A. The late payment fee assessed by the mortgage company is 2% of the total mortgage payment.

Late Payment fee = (999.00 - 978.79) / 978.79 = 0.021 = 2% (approx)...So, YES is the answer.

B. The previous owners were asking more than $179,000 for their property.

It has been only highlighted that 'The owners have accepted your bid of $179,000!'
So, it can't be inferred whether the owners were asking more than, or equal to $179,000 for their property....So, NO is the answer.

C. Making double payments on the principal in the first year would mean paying an extra $265 per month.

Making double payments on the Principal in the 1st year will amount to making an overall payment of
= $ 7111.39 + 2 * 2008.95 (ie, the Principal)
= $ 11129.29

Additional Outgo/month (to cater for double payment of the Principal amount) = $2008.95 /12 
 = $ 165.40....So, NO is the answer.
  
The answers wil be YES, NO and NO

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:

A. $17,900
B. $21,600
C. $23,400
D. $29,000
E. $35,200

TAB 2 highlights that 
Total payments (against Loan) = $ 273610.80
Interest amount paid = $ 123610.80

So, the Principal Amount repaid = 273610.80 - 123610.80
 = 150000
However, Total Cost of Home = 179000

It means Down Payment of $ (179000 - 150000) = $ 29000

The answer will be Option (D)

$!vakumar.m · Answer

1. Consider each of the following statements. Does the information in the three sources support the inference as stated?
 (a) The late payment fee assessed by the mortgage company is 2% of the total mortgage payment. 
Actual mortgage payment is $978.79 whereas the late payment amount is $999.16. 
The difference is 999.16 - 978.79 = $20.37
and  \frac{20.37}{978.79} *100 = 2.08%.
  Answer : YES

(b) The previous owners were asking more than $179,000 for their property. 
Since the first tab mentions that "the owners have accepted your bid of $179,000!", so we can infer that the previous owners were expecting/asking more than $179,000.
  Answer : YES

(c) Making double payments on the principal in the first year would mean paying an extra $265 per month. 
The first year principal amount is $2008.95 which is equivalent to $167.4 per month. Therefore, double payments on the principal is not equal to $265 per month. 
  Answer : NO

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: 
From tab 3 we find that the total of 360 payments is equal to $273,610.8 and the total interest component is $123,610.8
which means that the principal component is $273,610.8 - $123,610.8 = $150,000
Since, the bid value is $179,000 therefore, the down payment made on the purchase of the home is $29,000.
  Answer D

Catman · Answer

Statement 1:  Yes, The late payment fee assessed by the mortgage company is 2% of the total mortgage payment.   
 
Payment Due = Monthly EMI + Escrow Payment
Late Payment Due= Monthly EMI+ Escrow Payment+ Late Fees
Late Fees= 999.16- (760.03 + 218.76)
Late Fees = $20.37
Total Mortgage Payment is $978.79 
Required Percentage (20.37/978.79)*100 ~ 2% .

Statement 2: No, The previous owners were asking more than $179,000 for their property.

No information is provided about their previous asking price for the property, hence cannot be determined.

Statement 3: No, Making double payments on the principal in the first year would mean paying an extra $265 per month.   
Principal to be repay in the first year =2008.95
 Monthly Principal= 2008.95/12=167.41
Double the amount of principal, buyer has to pay additional 167.41 per month, this is not equal to the extra $265 per month.
 
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:  Choice D. $29,000  
 Total Amount Paid= $ 273,610.80
 Interest Amount= $ 123,610.80
 Principal Amount= ($ 273,610.80- $123,610.80)
 Principal Amount= $ 150,000
 Bid Amount= $179,000
 Downpayment= Bid Payment- Principal Payment
 Downpayment = $179,000- $150,000
   Downpayment= $ 29,000

pintukr · Answer

QUESTION 1

A. The late payment fee assessed by the mortgage company is 2% of the total mortgage payment.

% for late payment vis-a-vis total mortgage payment 
= ((Late payment amount) / 978.79) X 100
= (21.21 / 978.79) x 100
= 2%

Answer -- YES

B. The previous owners were asking more than $179,000 for their property.

No information given regarding the owners' demand; only information that the buyers' bid of $179,000 accepted by the owners.

It can't be ascertained that ' The previous owners were asking more than $179,000 for their property.'

Answer -- NO

C. Making double payments on the principal in the first year would mean paying an extra $265 per month.

Double payments of Principal = 2 x 2008.95 (Extra payment = $ 2008)

Total payment = 7111.39 + 2 x 2008.95 = 11129.29

Extra payment (per month) = 2008 /12 = $ 165 (approximately)

Answer -- NO

IMO, the overall correct options are YES, NO & NO

QUESTION 2

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:

A. $17,900
B. $21,600
C. $23,400
D. $29,000
E. $35,200

Given , Home Cost = 179000.........(1)

Overall paid (for Loan) = 273610.80
Interest = 123610.80

Principal Amount (for Loan) = 273610.80 - 123610.80
 = 150000............(2)

Down Payment of = 179000 - 150000
 = 29000

IMO, (D) is the correct option

Sajjad1994 · Answer

Hello Everyone!

Good Morning/evening/afternoon.

OA to this question is posted, it is:

1. Yes, No, and No
2. D

Competition mode is off now.

Archit3110  you are a senior member and expect you to format your question properly.

RahulJain293  anything which the test taker is supposed to know to answer the question will be explained in the question during the official test. Here at this question you don't need to know what exactly "Escrow payment" means.

pintukr  is topper on this question.

I like the format by  pintukr  and  sivakumarm786  and I recommend other participant to follow  pintukr  format to answer and explain the question.

Sajjad1994 · Answer

Official Explanation

1. Consider each of the following statements. Does the information in the three sources support the inference as stated?

The late payment fee is 2% of the total payment amount. The amount of the late payment can be determined by subtracting the regular payment from the late payment amount. This gives a difference of $20.37. Divide this difference by the regular payment to find the percentage charged.

In Source #1, the real estate agent states that the buyers’ bid has been accepted. However, there is no information regarding the original asking price of the house.

Making double principal payments in the first year would mean paying an extra $167.41 per month. This is calculated by dividing the annual principal for the first year by 12.

Answer: Yes, No, and No

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:

The correct answer is $29,000. At the end of the first year of the loan, the mortgage balance is $147,991.05. During this year, the total principal paid on the loan was $2,008.95. So, at the start of 2016, the amount owing on the loan was $150,000. The purchase price for the house was $179,000, so the buyers made a down payment of $29,000.

Answer: D

opustech · Answer

Sometimes voice mail messages discuss voice-enabled payment systems to activate a few features. In that case, you need to utilize the device to support the technologies all the time to overcome delay in response, and other factors. Therefore, whenever you are preferring to use voice recognition related systems, ensure to double check all stuffs fall in the right place for it.

anirchat · Answer

Downpayment = Actual Price - (Principal paid in first year + Balance amount in First Year)

arushi118 · Answer

Owners buy a house for $179,000.

Amortization table:  
(Amortization refers to separating the payments for the loan principal and interest into periodic payments to where the loan is paid off at a specified time, thereby gradually reducing the debt through repayment both lender and borrower agree )

This table tells us that how will the amount of $179k be paid - it will be paid in 360 installments - so in 30 years.
We see a table which tells us the year wise interest, principle and the balance(which is the amount left to be paid)
Total monthly principle and interest is 760.03 (This is the monthly principle amount + monthly interest)
So, For example-
 In 2016: 
We see the principle as 2008.95 and the interest as 7111.39
So, The monthly principle payment was ~167 (2008.95/12)
Monthly interest payment was ~593 (7111.39/12)
Hence, the total monthly amount - 167+593 = ~760

Also note that as the years go by, the monthly principle amount is increasing and the monthly interest amount is decreasing.
 Like in 2017: 
Monthly Principle amount - 2512/12 = ~209.34
Monthly Interest amount - 6608/12 = ~551
Total monthly amount - 209.34 + 551 = ~760

So the total amount (principle + interest) to be payed will 273610.80
In this, Interest account for - 123610.80
So Principle amount accounts for - 273610.8 - 123610.8 = 150,000

-------------------------------------------------------------------

January 2016 Mortgage Statement:  
We already know that The monthly principle and interest = 760.03
And this tab shows that their is an escrow payment (similar to down payment) to be paid = 218.76
Hence, total amount to be paid in Jan 2016 = 760.03+218.76 = 978.79 (If paid on time)

And if not paid on time, there is a little penalty

--------------------------------------------------------------------

We also see, that the price of the house is 179000.
But the total principle amount being payed (as calculated from the "Amortization Table" tab) is 150000.
This means that there is a down payment of 179000 - 150000 = $29000.

Voice Mail from Real Estate Agent: I have excellent news. The owners h

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Yes	No	Statements
		The late payment fee assessed by the mortgage company is 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.

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Voice Mail from Real Estate Agent: I have excellent news. The owners h

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