12. A seller accepts an offer on her home for $60000. At the time of the offer, a $2000 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 $45720, plus 15 days' interest. The interest rate on her loan is 10.75% per annum. Her monthly payment is $483.50. Assuming no additional closing costs and a 360-day year, approximately how much money will she receive at closing?
Answer: C
$10,680
To determine how much money the seller will receive at closing, we calculate her proceeds from the sale after deducting the commission and the amount owed to her lender, including interest.
A) $8,475
Option A is incorrect because it underestimates the amount the seller would receive at closing. The calculations of proceeds from the sale, commission, and loan payoff do not support this figure, which does not account for the seller's earnings sufficiently.
B) $10,475
Option B is also incorrect. While it is closer to the correct answer than Option A, it still fails to accurately reflect the seller's total proceeds after accounting for the commission and interest owed on the loan.
C) $10,680
Option C is correct. After calculating the commission (6% of $60,000 = $3,600) and the total amount owed to the lender including 15 days’ interest, the seller's net proceeds amount to approximately $10,680, which accurately reflects her earnings from the sale.
D) $10,885
Option D is incorrect as it overestimates the seller's net proceeds. This figure does not align with the proper deductions for the commission and the interest owed, leading to an inflated closing amount.
Conclusion
Option C is definitively the correct answer as it accurately calculates the seller's net proceeds after all deductions. The other options fail to reflect either the proper commission or the total amount payable to the lender, resulting in incorrect figures. Hence, the calculations support that $10,680 is the correct amount the seller will receive at closing.