Question

Geo wants to buy a new home. The sales price is 185000. He has prequalified for a loan at 5.4% interest over 30 years with a 5% down payment and closing cost of 3% of the sales price. How much are the closing costs?

Answer 1

Answer:

$5,550.

Explanation:

The sales price = $185,000

The closing cost = 3% of the sales price.

Thus:

$\begin{gathered} \text{Closing Price=3\% of } \ 185,000 \\ =\frac{3}{100}\times185,000 \\ =0.03\times185,000 \\ =\ 5,550 \end{gathered}$

The closing cost is $5,550.