Question

A property closes on June 10, with the day of closing charged to the buyer. The buyer is assuming the seller's mortgage loan with its principle balance of $227,500 at 4.5% interest. Which entry will appear on the closing disclosure?

Answer 1

Answer:

Step-by-step explanation:

Answer 2

As per simple interest, the entry that will appear on the closing disclosure will be $227780.48.

What is simple interest?

"Simple interest is interest calculated on the principal of a loan or the original contribution to a savings account."

Given, the principle balance is $227500.

Rate of interest is 4.5%.

Therefore, the entry will appear on the closing disclosure is

=  $227500 + $227500 × 4.5/100 × 10/365

=  $227500 + $280.48

= $227780.48

Learn more about simple interest here: https://brainly.com/question/15519540

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