Real Estate Math
A Massachusetts property sold for $490,000 has a buyer-side closing cost of 2.5% of the purchase price (for lender fees, title insurance, prepaid items). How much does the buyer need for closing costs alone?
A$12,250✓ Correct
B$9,800
C$24,500
D$4,900
Explanation
Buyer closing costs = $490,000 × 2.5% = $12,250. To solve this, multiply the relevant values: $490,000 at 2.5%.. The correct answer is $12,250.. This is a common calculation on the Massachusetts real estate exam.
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