Question

Barney and Betty buy a home. They plan to make a down payment and carry a $101,000 mortgage. Closing costs are $3,750 and are added to the loan amount. What is the new amount being financed?

A) 104,750
B) 97,250

Answer 1

Option A) 104,750

Explanation:

Odyssey ware

Answer 2

Answer: A) 104,750

Explanation:

Given: Barney and Betty buy a home.

Mortgage amount =
`\$\ 101,000`

Closing cost=
`\$\ 3,750`

When closing costs are added to the loan amount.

Then, the new amount being financed is given by :-

`\text{New amount=Mortgage +Closing cost}\\\\\Rightarrow\text{New amount = }\$\ 101,000+\$\ 3,750\\\\\Rightarrow\text{New amount = }\$ 104,750`

Hence, the new amount being financed $ 104,750