Sylvia Smith takes out a $85,000 mortgage. She paid 2.2% of the loan amount in closing costs and $7,200.35 in total interest the first year of the loan.

What are Sylvia's closing costs? $

If the APR is (interest for one year plus closing costs) : (amount financed), what was the APR for that year? %

If the APR is (interest only for one year) : (amount financed), what was the APR for that year?

Question

Scarlet

9 October, 14:27

+5

Answers (1)

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Raelynn Preston · Answer 1

85,000*0.022=1,870

(1,870+7,200.35) : 85,000) * 100=10.67%

(7,200.35:85,000) * 100=8.47%