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stealth61 [152]
3 years ago
7

A lender will make an 80% loan-to-value loan on a property that is appraised for $72,250 and sells for $73,500. If the buyer has

saved $14,450 for a down payment, how much more (if any) will he need in order to make the down payment required under the terms of this loan?
Mathematics
1 answer:
anyanavicka [17]3 years ago
7 0

Answer:

$1,250

Step-by-step explanation:

We are given;

Loan to value ratio;LTV = 80% = 0.8

Appraised value of property = $72,250

Selling value of property = $73,500

Now, the formula for Loan to value ratio is;

LTV = Loan amount/Appraised value of property

0.8 = loan amount/72250

Cross multiply to get;

Loan amount = 0.8 × 72250 = $57,800

Now,we are told that he has saved $14,450.

Thus, total money raised including loan = $57,800 + $14,450 = $72,250

Since the selling value = $73,500, then,

Amount left for him to save in order to make down payment = $73,500 - $72,250 = $1,250

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alexandr1967 [171]

Answer:

a)P( X

We want this probability:

P( X >64)

And using the z score formula given by:

z = \frac{x -\mu}{\sigma}

We got:

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b) For this part we want to find a value a, such that we satisfy this condition:

P(X>a)=0.25   (a)

P(X   (b)

Both conditions are equivalent on this case. We can use the z score again in order to find the value a.  

As we can see on the figure attached the z value that satisfy the condition with 0.75 of the area on the left and 0.25 of the area on the right it's z=0.674. On this case P(Z<0.674)=0.75 and P(z>0.674)=0.25

If we use condition (b) from previous we have this:

P(X  

P(z

But we know which value of z satisfy the previous equation so then we can do this:

z=0.674

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Step-by-step explanation:

Previous concepts

Normal distribution, is a "probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean".

The Z-score is "a numerical measurement used in statistics of a value's relationship to the mean (average) of a group of values, measured in terms of standard deviations from the mean".  

Part a

Let X the random variable that represent the heights of a population, and for this case we know the distribution for X is given by:

X \sim N(42,25.5)  

Where \mu=42 and \sigma=5.5

And we want this probability:

P( X

And using the z score formula given by:

z = \frac{x -\mu}{\sigma}

We got:

P( X

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P( X >64)

And using the z score formula given by:

z = \frac{x -\mu}{\sigma}

We got:

P( X >64) =P(Z> \frac{64-42}{5.5}) =P(Z>4)=0.0000316

Part b

For this part we want to find a value a, such that we satisfy this condition:

P(X>a)=0.25   (a)

P(X   (b)

Both conditions are equivalent on this case. We can use the z score again in order to find the value a.  

As we can see on the figure attached the z value that satisfy the condition with 0.75 of the area on the left and 0.25 of the area on the right it's z=0.674. On this case P(Z<0.674)=0.75 and P(z>0.674)=0.25

If we use condition (b) from previous we have this:

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z=0.674

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a=42 +0.674*5.5=45.707

So the value of height that separates the bottom 75% of data from the top 25% is 45.707.  

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Answer:

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