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Lelechka [254]
2 years ago
7

A lender estimates the closing costs on a home loan will be 3% of the loan amount of $180,000. The actual closing costs are list

ed below. Closing Cost Charge Loan origination $345 Title insurance $600 Attorney's fees $1,350 Appraisal $480 Inspection $550 Recording fees $175 Escrow $1,900 Evaluate the lender's good faith estimate. A. The lender made an excellent estimate; it was equal to the actual closing costs. B. The lender made a very good estimate; it was within 0. 25% of the actual closing costs. C. The lender made a fairly good estimate; it was between 0. 25% and 0. 5% of the actual closing costs. D. The lender made a poor estimate; it was higher than 0. 5% of the actual closing costs. Please select the best answer from the choices provided A B C D.
Mathematics
1 answer:
Anvisha [2.4K]2 years ago
3 0

Based on the information provided, it can be inferred that the lender made an excellent estimate; was equal to actual closing costs (option A)

<h3>How do you know what the lender's estimate was? </h3>

Based on the information provided, the lender estimated that the closing cost is equal to 3% of the $ 180,000 loan. To calculate that value we must do the following operation:

  • $ 180,000 / 100 x 3% = $ 5,400.

Based on the above, the estimated closing cost for that loan is $ 5,400.

<h3>How to know the real cost of closing the loan? </h3>

To know the real cost of the loan closing we must add the following values:

  • Closing Cost Charge Loan origination $ 345
  • Title insurance $ 600
  • Attorney's fees $ 1,350
  • Appraisal $ 480
  • Inspection $ 550
  • Recording fees $ 175
  • Escrow $ 1,900

$ 1,900 + $ 175 +% 550 + $ 480 + $ 1,350 + $ 600 + $ 345 = $ 5,400.

According to the above, the lender made a very precise estimate because his calculation hit the exact value of the closing cost (option A)

Learn more about lender in: brainly.com/question/3268275

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Artemon [7]

Answer:

m - 7.50 = 12.50

and

m = 7.50 + 12.50

Step-by-step explanation:

The best answers would be:

m - 7.50 = 12.50

and

m = 7.50 + 12.50

First of all, let's figure out what the question is asking us:

The question is asking us to find the amount of money on the gift card

It tells us to use "m" for "the amount of money on the gift card"

Now that we know the following, we can put together the equation

m = the amount of money on the gift card

$7.50 = cost of the book

$12.50 = amount remaining

Since he receives the gift card and then buys a book that costs $7.50, we are going to "have to subtract $7.50 from m". And we know that $12.50 is remaining, so we "make the equation equal to 12.50".

So, let's set up the equation:

m - 7.50 = 12.50

Now that we know the equation, we can solve for "m"

m - 7.50 = 12.50

Step 1: Add 7.50 to both sides.

m − 7.50 7.50 = 12.50 + 7.50

Step 2: Simplify

Answer: m = 20

Another way you can set up this equation is:

m = 7.50 + 12.50

Because we want to find "m", we set it equal to the equation. Since Salim bought a book for $7.50 and had $12.50 remaining, we want to find how much he had on the gift card that made him have $12.50 remaining when he bought the book. So, we have to add 7.50 and 12.50, to find how much is on the gift card.

So, the equation "m = 7.50 + 12.50", makes sense when solving for "m"

Hint: Once you have realized that the equation has Like Terms on the same side you must Combine the Like Terms by either adding them together or subtracting them.

Now that we know the equation, let's solve it

m = 7.50 + 12.50

Step 1: Combine like terms

m = (7.50 + 12.50)

m = 20

Since both equations equal $20 and both make sense, we can conclude that these are the best options.

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