Question

Max is buying a home where is $250,000. He will pay 3% in closing costs and 12% for down payment. Calculate how much he will pay for each of these one-time fees.

a. Closing Costs: $7,500, Down Payment: $30,000
b. Closing Costs: $7,500, Down Payment: $22,500
c. Closing Costs: $7,500, Down Payment: $40,000
d. Closing Costs: $10,000, Down Payment: $30,000

Answer 1

Max will pay $7,500 in closing costs and a $30,000 down payment for the $250,000 home he is buying.

Step-by-step explanation:

Max is buying a home worth $250,000, so we'll need to calculate the down payment and closing costs.

1. To find the closing costs, we calculate 3% of $250,000, which is 0.03 × $250,000 = $7,500.
2. Next, to find the down payment, we calculate 12% of $250,000, which is 0.12 × $250,000 = $30,000.

Therefore, the closing costs will be $7,500 and the down payment will be $30,000.