The do Kari is purchasing a home for $220,0 payment is 25% and the balance will be finance with a 15 year mortgage at 8% and 3 discount points. Kari made a deposit of $20,000 (applied the down payment) when the sales contract wa signed. Kari also has these expenses: credit report, $90

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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Kari is purchasing a home for $220,000. The down
payment is 25% and the balance will be financed
with a 15 year mortgage at 8% and 3 discount
points. Kari made a deposit of $20,000 (applied to
the down payment) when the sales contract was
signed.
Kari also has these expenses: credit report, $90;
appraisal fee, $110; title insurance premium, 1% of
amount financed; title search, $200; and attorney's
fees, $500. Find the closing costs (in $).
Transcribed Image Text:Kari is purchasing a home for $220,000. The down payment is 25% and the balance will be financed with a 15 year mortgage at 8% and 3 discount points. Kari made a deposit of $20,000 (applied to the down payment) when the sales contract was signed. Kari also has these expenses: credit report, $90; appraisal fee, $110; title insurance premium, 1% of amount financed; title search, $200; and attorney's fees, $500. Find the closing costs (in $).
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