Massachusetts Real Estate (Math)CORRECT QUESTIONS & ANSWERS(RATED A)
6 views 0 purchase
Course
Massachusetts Real Estate
Institution
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...
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
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller shantelleG. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R188,30. You're not tied to anything after your purchase.
