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The purchase price of a condominium is $122,500. A down payment of 25% is made. The bank charges $735 in fees plus

2
1
2
points. Find the total of the down payment and the closing costs. (Round your answer to the nearest cent.)

1 Answer

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To find the total of the down payment and the closing costs, we need to calculate both the down payment and the closing costs separately and then add them together.

Given information:

Purchase price of the condominium = $122,500

Down payment percentage = 25%

Bank fees = $735

Points charged by the bank = 2.5% of the purchase price (2.5% * $122,500)

Step 1: Calculate the Down Payment Amount

Down payment percentage = 25%

Down payment amount = 25% of the purchase price

Down payment amount = 0.25 * $122,500

Step 2: Calculate the Points Charged by the Bank

Points charged by the bank = 2.5% of the purchase price

Points charged by the bank = 0.025 * $122,500

Step 3: Calculate the Total Closing Costs

Total closing costs = Bank fees + Points charged by the bank

Total closing costs = $735 + (0.025 * $122,500)

Step 4: Calculate the Total of Down Payment and Closing Costs

Total of down payment and closing costs = Down payment amount + Total closing costs

Now, let's calculate the values:

Step 1:

Down payment amount = 0.25 * $122,500

Down payment amount = $30,625

Step 2:

Points charged by the bank = 0.025 * $122,500

Points charged by the bank = $3,062.50

Step 3:

Total closing costs = $735 + $3,062.50

Total closing costs = $3,797.50

Step 4:

Total of down payment and closing costs = $30,625 + $3,797.50

Total of down payment and closing costs = $34,422.50

So, the total of the down payment and the closing costs is $34,422.50 (rounded to the nearest cent).

User Aaberg
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