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stepladder [879]
2 years ago
9

Sam Smith is purchasing a home. The selling price is $107,000. He is acquiring a new conventional loan and decides to make a 10%

down payment. The interest rate is 8%. He is closing September 10. Using a 30-day month, how much interest will this buyer pay at closing? A. $214.00 B. $449.40 C. $475.50 D. $234.52
Mathematics
1 answer:
kotykmax [81]2 years ago
4 0

Answer:

$214

Step-by-step explanation:

selling price= $107,000

subtract 10%down payment

107,000- (107,000*.1)

107,000-107,00

96,300

Interest rate= 8%

Annual payment= 96,300* 0.08

$7704

per month payment= 7704/12

$624

payment on closing only for 10 days

642*(10/30)

$214

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