Wayne goodspeed falls in love with and buys a house for a price that is 5% more than the appraised value. he secures a 10% down loan for $220,000 which represents the appraised value less the 10% down. what was the purchase price, and how much did wayne have to come up with in cash?

The purchasing cost of the house = $ 256,666.67

Cash to come up with = $ 36,666.67

Explanation:

Given data:

Purchasing cost of the house = 5% more than the appraised price.

Loan amount = $ 220,000

Now,

it is given that 10%  down loan for $220,000 represents the appraised value

mathematically,

after 10% down form the original, 100% - 10% = 90%

since, the loan amount is 90% of the appraised amount, we have

the appraised price × 90% = $220,000

or

the appraised price =  $220,000 / 90% = $ 244,444.44

therefore, the purchasing cost of the house = 5% more than the appraised price

or

the purchasing cost of the house = $ 244,444.44 + ( 5% of $ 244,444.44)

or

the purchasing cost of the house = $ 256,666.67

also,

Purchasing cost = Loan amount + cash

or

cash = Purchasing cost - Loan amount

on substituting the values, we get

cash = $ 256,666.67 - $220,000

or

Cash to come up with = $ 36,666.67

rational decision making is a multi-step process for making choices between alternatives. the process of rational decision making favors logic, objectivity, and analysis over subjectivity and insight. the word “rational” in this context does not mean sane or clear-headed as it does in the colloquial sense.

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whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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