Question

Mike's closing costs will add up to 4 percent and he'll make a down payment of 20 percent on a house that costs $210,000. Over the life of his loan, he will pay $197,040.76 in monthly payments. What is the total cost of his house? A. 244,540.76 B. 247,440.76 C. 265,440.76

Answer 1

For the question "Mike's closing costs will add up to 4 percent and he'll make a down payment of 20 percent on a house that costs $210,000. Over the life of his loan, he will pay $197,040.76 in monthly payments. What is the total cost of his house?" To obtain the total cost of the house, we first obtain the amount he paid as the closing costs and the down payment he paid which we will add to the total amount paid in monthly payments. Closing cost = 4% of $210,000 = 0.04 x 210,000 = $8,400 Down payment = 20% of $210,000 = 0.2 x 210,000 = $42,000 Total monthly payments = $197,040.76 Total cost of the house = $8,400 + $42,000 + $197,040.76 = $247,440.76