Real Estate Math
A Massachusetts buyer offers $5,000 in earnest money on a $415,000 home. What percentage of the purchase price is the earnest money?
A1.2%✓ Correct
B0.8%
C1.5%
D2.0%
Explanation
Earnest money percentage = $5,000 ÷ $415,000 = 0.01205 ≈ 1.2%. Using the values given ($5,000, $415,000), apply the appropriate formula.. The correct answer is 1.2%.. This is a common calculation on the Massachusetts real estate exam.
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