A lender estimates that the closing costs on a $170,000 home loan will be $6,375.00. The actual closing costs were 4.0%of the lo

Question

2 years ago

11

A lender estimates that the closing costs on a $170,000 home loan will be $6,375.00. The actual closing costs were 4.0%of the lo

an amount. Determine if the closing costs were higher or
lower than the estimate and by what percent
higher by 0.25%
higher by 0.5%
lower by 0.25%
lower by 0.5%

Mathematics

1 answer:

Feliz [49] · Answer 1 · 2023-04-24T17:45:29+03:00

Answer:

(a) higher by 0.25%

Step-by-step explanation:

The error in the estimate is found by comparing the estimated rate to the actual rate.

__

The rate of estimated closing costs is ...

(estimated cost)/(home cost) × 100% = 6375/170000×100% = 3.75%

The actual rate is 4.00%.

actual - estimate = 4.00% -3.75% = 0.25%

The actual closing costs were higher than the estimate by 0.25%.