17. A seller accepts an offer on her home for $60,000. At the time of the offer, a $2,000 earnest money check is deposited. Previously, the seller agreed to pay a 6% commission to the listing broker. As of the date of closing, she owes her lender $45,720, plus 15 days' interest. The interest rate on her loan is 10.75% per annum. Her monthly payment is $493.50. Assuming no additional closing costs and a 360-day year, approximately how much money will she receive at closing?
Answer: C
Approximately $10,680
To determine the amount the seller will receive at closing, we need to account for the sale price, the earnest money, the commission owed to the broker, and the balance owed to her lender including interest.
A) $8,475
This option is incorrect. If the seller were to receive $8,475 at closing, it would not adequately account for the sale price of $60,000, the earnest money of $2,000, and the commission and loan payoff calculations.
B) $10,475
This choice is also incorrect. While this amount is closer, it does not reflect the accurate calculations of the commission and loan interest that would affect the final payout at closing.
C) $10,680
This is the correct answer. After calculating the commission (6% of $60,000 = $3,600), subtracting the total owed to the lender ($45,720) and 15 days of interest ($183.65), the seller receives $60,000 from the sale plus the $2,000 earnest money, minus the commission and loan payoff, resulting in approximately $10,680.
D) $10,885
This option is incorrect. The amount of $10,885 does not align with the calculations for the commission owed or the interest accrued, leading to an overestimate of the final payout the seller would receive at closing.
Conclusion
The calculations confirm that the seller receives approximately $10,680 at closing after accounting for the sale price, earnest money, commission, and the loan balance with interest. Other options either underestimate or overestimate the amount due to incorrect calculations regarding the seller's financial obligations at closing.