Tina has to pay 4 percent of the purchase price toward closing costs for her mortgage. if the purchase price is $275,000, what is the closing cost amount?
$11,000
$15,250
$110,000

The closing cost amount is $11,000 (=$275,000*4%) according to the information on the question above. This problem can be solved using a simple percentage principle of mathematics. The closing cost is the 4% portion of the purchase price, therefore we can find the closing cost amount by multiplying the purchase price by 0.04.

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