Real Estate Math

An Iowa buyer puts 10% down on a $225,000 home. Closing costs are 3% of the loan amount. How much total cash does the buyer need at closing?

A$28,575✓ Correct
B$22,500
C$25,575
D$29,250

Explanation

Down payment = $225,000 x 0.10 = $22,500.

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