Question

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

Answer 1

Answer:

We all know that you will start off with 2,50,000 and multiply that by 3%, which is the same thing as 3/100 or 0.03 in decimal form.

= 2,50,000 * 0.03

= 7,500

Now,

You do the same thing again.

= 2,50,000 * 0.12

= 30,000

So,

Here Closing Cost = 7,500.

And Down Payment = 30,000.