Real Estate Math
A North Dakota property's purchase price is $420,000. The buyer obtains a loan for 80% of the price and the seller contributes $6,000 to closing costs. What is the buyer's down payment out-of-pocket before closing costs?
A$78,000
B$84,000✓ Correct
C$90,000
D$96,000
Explanation
Loan amount = $420,000 × 80% = $336,000. Down payment = $420,000 − $336,000 = $84,000. To solve this, multiply the relevant values: $420,000 and $6,000 at 80%.. The correct answer is $84,000.. This is a common calculation on the North Dakota real estate exam.
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