Question

Ranald has to pay 2% in closing costs and 14% 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. $185,205.65
b. $178,525.30
c. $189,021.87
d. $174,934.78

Answer 1

To find the total cost of the house, add the closing costs, down payment, and loan amount. In this case, it is $174,910. None of the answer is correct

Step-by-step explanation:

To find the total cost of the house, we need to calculate the closing costs and the down payment. The closing costs are 2% of the purchase price, while the down payment is 14% of the purchase price. We can find the purchase price by adding the closing costs and the down payment to the loan amount. The loan amount is the total cost of the house minus the down payment.

Let's calculate the closing costs: 2% of $170,500 = $3,410.

Now let's calculate the down payment: 14% of $170,500 = $23,870.

The loan amount is: $170,500 - $23,870 = $146,630.

Finally, to find the total cost of the house, we add the closing costs, the down payment, and the loan amount: $3,410 + $23,870 + $146,630 = $174,910.

Therefore, the total cost of the house is $174,910.

None of the answer is correct