Question

Melinda and her husband are purchasing a home. The cost of the home is $135,500. They will be required to pay a down payment of 25% of the purchase price and to pay closing costs of 3% of the purchase price. How much cash do they need for the down payment and closing cost?

Answer 1

$37,940

Explanation:

1. Divide $135,500 by 25%= $33,875

2. Divide $135,500 by 3%= $4065

3. Add both quotients

$33,875 + $4065

= $37940

Melinda and her husband will need $37,940 for the down payment and closing cost.