Answer:
A. $307,172.72
Step-by-step explanation:
First we calculate closing cost and down payment for the purchase. We are given their respective percentages as 4% and 16%.
Closing Cost = 4% of 225,500
Closing Cost = 4/100 *225,500
Closing Cost = 9,020
Down Payment = 16% of 225,500
Down Payment = 16/100 * 225,500
Down Payment = 36,080
Therefore, total amount required to pay for closing cost and down payment is $45,100 (36,080 + 9,020)
As mentioned in the question, she will pay $262,072.72 over the life of the loan.
Hence the total cost of her house is
$262,072.72 + $45,100 = $307,172.72