Question

A mortgage broker charges 1000 plus 0.5% of the mortgage amount. What is the mortgage broker fee for an 89,000 mortgage?
A. $445
B. $450
C. $1,445
D. $1,500

Answer 1

Hi there! The answer is C.

To find our answer we must multiply 89,000 by 0.5% (which is the same as multiplying by 0.005) and next add up 1000. We get:
0.005 × 89,000 + 1,000 = 445 + 1000 = 1,445.

Therefore, the mortgage broker fee is $1,445.