Compucram Math Questions With Correct Answers
A loan for $150,000 is payable at $2500 per month at 7% interest. What is the interest only payment for the 8th month? $772.91 QUESTION RATIONALE Calculation: 2,500 x 7 = 17,500 You've made 7 principal payments of $2,500 each. 150,000 - 17,500 = 132,500 Principal balance in 8th month 132,500 * 7% = 9,275 Annual interest 9,275 / 12 = 772.91 Interest payment in the 8th month A contract states that the taxes be prorated between the buyer and seller. The taxes have been paid in advance. The proper entry on the closing statement is: Credit the seller and debit the buyer QUESTION RATIONALE Taxes paid in advance will show up as credit the seller and debit the buyer. Property taxes of $1,400 have been prepaid for the entire year. The seller sells the property and escrow closes September 12th. What is the proration at closing using a statutory year and buyer has day of closing? Debit buyer $423.79, credit seller
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