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Massachusetts Real Estate (Math)CORRECT QUESTIONS & ANSWERS(RATED A) $9.99   Add to cart

Exam (elaborations)

Massachusetts Real Estate (Math)CORRECT QUESTIONS & ANSWERS(RATED A)

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  • Course
  • Massachusetts Real Estate
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  • Massachusetts Real Estate

Types of Interest - ANSWER Simple- Paid only on the unpaid balance owing. Compound- Paid on the balance plus the accrued interest. Add On- Interest is determined for the life of the loan, and then added to the principal. Discount- Borrower signs a note for the principal and interest combined...

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  • October 20, 2024
  • 4
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • massachusetts real estate
  • Massachusetts Real Estate
  • Massachusetts Real Estate
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shantelleG
Massachusetts Real Estate (Math)CORRECT
QUESTIONS & ANSWERS(RATED A)

Types of Interest - ANSWER Simple- Paid only on the unpaid balance owing.



Compound- Paid on the balance plus the accrued interest.



Add On- Interest is determined for the life of the loan, and then added to the principal.

Discount- Borrower signs a note for the principal and interest combined but only receives the principal.
You then pay the interest on the full amount of the note.



Rules for Calculating Interest - ANSWER Can be calculated annually, semi annually (1/2 of annual),
quarterly (1/4 of annual), monthly (1/12 of annual), or daily (1/360).

360 days a year and 30 days in a month.



Interest Problem (1) - ANSWER On a loan of $6,000 at 6%, what is the interest due for 3 months and 5
days?

*Interest for 1 year= 6% x $6,000= $360

Interest for 1 month= $360 divide 12= $30

Interest per day= $30 divide 30= $1.00

= $90 + $5= $95



Interest on R.E. Loans (1 of 2) - ANSWER What is the interest due for the first and second months on a
mortgage of $12,000 for 20 years with 6% interest per annul if the principal is paid in equal monthly
installments?

*Principal Payments=$12,000 divide 240 months=$50 a month.

Annual interest on $12,000 @ 6%= .06 x $12,000=$720



Interest on R.E. Loans (2 of 2) - ANSWER Interest for 1 month= $720 divide 12= $60

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