Real Estate Math
An investor purchases a Delaware property for $500,000 with a 25% down payment and obtains a mortgage for the balance. Closing costs are $8,000 (paid in cash). What is the investor's total cash investment at closing?
A$133,000✓ Correct
B$125,000
C$508,000
D$132,000
Explanation
Down payment = $500,000 × 25% = $125,000. Total cash at closing = $125,000 + $8,000 = $133,000. To solve this, multiply the relevant values: $500,000 and $8,000 at 25%.. The correct answer is $133,000.. This is a common calculation on the Delaware real estate exam.
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