Question

Lenore makes a 95% offer on a townhouse that’s listed at $285,000 and includes an earnest money deposit for 10% of her offer, which the seller accepts. She brings to closing a cashier’s check for $35,025 comprising the balance of her 20% down payment and closing costs. What’s the amount of her total down payment?

Answer 1

Answer: that’s wrong ^^

The answer is $54,150!

Answer 2

$39,750

Step-by-step explanation:

1. After the seller acceptance the earnest money deposit is 27,075=(285,000×0.95)×0.1
2. Check amount - earnest money deposit is equal to 20% of down payment(DP).

Therefore 35,025 - 27,075= 7,950=0.2 × DP⇒ DP= 7,950÷0.2=$39,750