Real Estate Math
If closing costs of $18,500 represent 2.5% of the purchase price, what is the purchase price?
A$740,000✓ Correct
B$462,500
C$740,500
D$720,000
Explanation
Purchase Price = Closing Costs ÷ Rate = $18,500 ÷ 0.025 = $740,000. To solve this, multiply the relevant values: $18,500 at 2.5%.. The correct answer is $740,000.. This is a common calculation on the New York real estate exam.
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