Real Estate Math

A Louisiana buyer makes a $340,000 purchase with a 20% down payment. Closing costs are 3% of the loan amount. What total cash does the buyer need at closing?

A$61,920
B$8,160✓ Correct
C$68,000
D$81,600

Explanation

Down payment = $340,000 × 20% = $68,000. Loan amount = $272,000. Closing costs = $272,000 × 3% = $8,160.

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