Finance

A Maine property sells for $400,000 with a 20% down payment. The buyer's total closing costs (excluding the down payment) are 3% of the loan amount. The total cash needed at closing is:

A$80,000
B$87,200
C$89,600✓ Correct
D$96,000

Explanation

Down payment = $400,000 × 20% = $80,000. Loan = $320,000. Closing costs = $320,000 × 3% = $9,600. Total cash = $80,000 + $9,600 = $89,600.

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