Question

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? $307,172.72 $302,771.72 $301,217.72

Answer 1

Answer for your question is (307,172.72)

Answer 2

Answer:

The correct option is 1.

Step-by-step explanation:

It is given that 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.

So, Inez has to pay 20% of $225,500.

$225500\times \frac{20}{100}=45100$

Therefore Inez has to pay $45100 as closing cost and down payment.

Over the life of the loan, she will pay $262,072.72.

The total cost of her house is the sum of $262,072.72 and $45100. Because the total cost is the sum of down payment, closing cost and the payments over the life of the loan.

$\ 262,072.72+\ 45100=\ 307,172.72$

Therefore the correct option is 1.