Real Estate Math

A Hawaii condo buyer needs to put 10% down on a $420,000 purchase and pay 2.5 points. What is the total initial cash required (down payment + points)?

AA. $51,450✓ Correct
BB. $52,200
CC. $51,000
DD. $52,500

Explanation

Down payment = $420,000 × 0.10 = $42,000.

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