Drake is purchasing a home for $249,000. He makes a 30% down payment and obtains a 25-year fixed rate mortgage loan at 5% annual interest. His monthly payments are $1,018.94. He pays an intangible tax of 0.4%. Which of the following is the total cost of principal, interest, down payment, and intangible tax? (2 points)
a
$381,378.00
b
$381,079.20
c
$305,682.00
d
$306,379.20
Answers
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1
Down payment
249,000×0.3=74,700
Principal
249,000−74,700=174,300
Total interest
Total paid-principle
25years=300months so
(1,018.94×300)−174,300
=131,382 this is total interest
intangible tax
249,000×0.004
=996
total cost of principal, interest, down payment, and intangible tax
74,700+174,300+131,382+996
=381,378....answer
B
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