Question

A buyer received an 80% loan. If the annual interest rate was 4.5% and the monthly interest paid was $790, what was the total sale price?

Answer 1

total sale price = $263,333

Step-by-step explanation:

given data

loan = 80 % = 0.80

annual interest rate = 4.5% = 0.045

interest paid = $790 monthly

solution

annual interest will be

annual interest = $790 × 12 months = $9,480

now we get

yield amount that is

yield amount =
`(9480)/(0.045)`

yield amount = $210,667

so total sale price for loan 80% will be

total sale price =
`(210667)/(0.8)`

total sale price = $263,333