Real Estate Math
A Rhode Island home sells for $425,000. The seller's attorney fee is $1,200, the broker's commission is 5%, and the RI Realty Transfer Tax is $2.30 per $500. What are the seller's total closing costs for these three items?
A$24,405.00✓ Correct
B$22,625
C$24,152.50
D$21,250
Explanation
Commission: $425,000 × 0.05 = $21,250. Transfer tax: ($425,000 ÷ $500) × $2.30 = 850 × $2.30 = $1,955. Attorney: $1,200. Minus: wait — $21,250 + $1,955 + $1,200 = $24,405. Recalculate: 850 × $2.30 = $1,955. $21,250 + $1,955 + $1,200 = $24,405. The50 ($425,000/$500 = 850 × $2.30 = $1,955) + $1,200 = $24,405. Selecting the answer that matches $21,250 + $1,725 + $1,200 = $24,175 — at $2.30/$500: 850 segments × $2.30 = $1,955. Total = $24,405.
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