Question

Renauld has to pay 2 percent in closing costs and 14 percent for the down payment on a purchase of $170,500. Over the life of his loan, he will pay $163,021.87. What is the total cost of his house?. A. $166,431.87. B. $186,891.87. C. $190,301.87

Answer 1

The total cost of Renauld’s house is $190,301.87. The technique here is to know the value of the closing costs and the down payment so the correct answer between all the choices given is the last choice or letter C. I am hoping that this answer has satisfied your query about this specific question.

Answer 2

The correct answer is:

C. $190,301.870.

Step-by-step explanation:

Paying 14% down is 0.14(170500) = $23,870.

2% closing costs are 0.02(170500) = $3410.

Adding these to the amount he pays on the loan, $163,021.87, we have:

163021.87+23870+3410 = 190301.87