Question

Ann is buying a house that costs $250,000. She is making a down payment of 15 percent, and her closing costs will amount to 3 percent. Over the life of her loan, she will pay $282,089.89 in monthly payments. What is the total cost of her house?
A.
$327,089.89
B.
$338,390.89
C.
$339,560.89

Answer 1

Hey there!!

... Total cost = $= Down payment + Closing cost + monthly payment

First let's solve for down payment.

... We know the down payment is 15%

... 15% = 15 / 100 = 0.15

What is 0.15 of $250,000 ?

... 0.15 × 250000

... $37500

Now, let's solve for the closing cost.

... The closing cost is 3%

... 3% = 3 / 100 = 0.03

What is 0.03 of 250000 ?

... 0.03 × 250000

... $7500

Monthly payment is $282,089.89

Hence,

Total cost of the house = $37500 + $7500 +  $282,089.89

... 45000 + 282089.89

... 327089.89 Is the total cost.

Hope my answer helps!!

Answer 2

So the down payment is: 15% of $250,000 = 0.15 x 250000 = 37,500

The Closing costs = 3% of $250,000 = 0.03 x 250000 = 7,500

Monthly payments = $282,089.89

Total cost of the house is 37,500 + 7,500 + 282,089.89 = $327,089.89

Option A.