select the correct answer. inez has to pay 4 percent in closing costs and 16 percent for the down - payment…

select the correct answer. inez has to pay 4 percent in closing costs and 16 percent for the down - payment on a purchase of $225,500 with an arm. over the life of the loan, she will pay $262,072.72. what is the total cost of her house? a. $307,172.72 b. $302,771.72 c. $301,217.72

select the correct answer. inez has to pay 4 percent in closing costs and 16 percent for the down - payment on a purchase of $225,500 with an arm. over the life of the loan, she will pay $262,072.72. what is the total cost of her house? a. $307,172.72 b. $302,771.72 c. $301,217.72

Answer

Answer:

A. $307,172.72

Explanation:

Step1: Calculate closing - costs amount

Closing costs = 4% of $225,500 = 0.04×225500 = 9020$

Step2: Calculate down - payment amount

Down - payment = 16% of $225,500 = 0.16×225500 = 36080$

Step3: Calculate total additional costs

Total additional costs = Closing costs+Down - payment = 9020 + 36080=45100$

Step4: Calculate total cost of the house

Total cost = Amount paid over loan life+Total additional costs = 262072.72+45100 = 307172.72$