Question

A property is sold for $100000 with 5% being paid with the offer as a good faith deposit and then 20 days later an additional $10,000. How much does the buyer pay at closing?

1) $10,000
2) $15,000
3) $80,000
4) $85,000

Answer 1

The buyer pays $85,000 at closing.

Step-by-step explanation:

To determine how much the buyer pays at closing, we need to calculate the remaining amount after the initial deposit and the additional payment.

The buyer paid 5% of the property's selling price as a good faith deposit, which is $100,000 x 0.05 = $5,000.

The buyer then made an additional payment of $10,000, making the total amount paid so far $5,000 + $10,000 = $15,000.

To find out how much the buyer pays at closing, we subtract this total amount from the property's selling price: $100,000 - $15,000 = $85,000.

Therefore, the correct answer is 4) $85,000.