Question

Inez has to pay 4 percent in closing costs and 16 percent for the down payment on a purchase of $225,500 with an ARM. Over the life of the loan, she will pay $262,072.72. What is the total cost of her house? $307,172.72 $302,771.72 $301,217.72

Answer 1

The answer is in the picture hope this helps (:

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Answer 2

Answer:

The answer is : $307,172.72

Step-by-step explanation:

Given is :

Inez has to pay 4 percent in closing costs and 16 percent for the down payment on a purchase of $225,500 with an ARM.

So, Inez has to pay 20% of $225,500.

which becomes : $0.20\times225500=45100$ dollars

Over the life of the loan, she will pay $262,072.72.

The total cost comprises of the down payment, closing cost and the payments over the life of the loan.

So, Inez's total cost of the house becomes = $262072.72+45100$ =$307172.72