Sylvia Smith takes out a $85,000 mortgage. She paid 2.2% of the loan amount in closing costs and $7,200.35 in total interest the

Question

3 years ago

11

Sylvia Smith takes out a $85,000 mortgage. She paid 2.2% of the loan amount in closing costs and $7,200.35 in total interest the

first year of the loan.
What are Sylvia's closing costs? $
If the APR is (interest for one year plus closing costs) ÷ (amount financed), what was the APR for that year? %
If the APR is (interest only for one year) ÷ (amount financed), what was the APR for that year?

Mathematics

1 answer:

Lostsunrise [7] · Answer 1 · 2022-02-24T23:37:12+03:00

Lostsunrise [7]3 years ago

8 0

85,000×0.022=1,870
(1,870+7,200.35)÷85,000)*100=10.67%
(7,200.35÷85,000)*100=8.47%