Real Estate Math
A seller's closing costs include: 5.5% commission on a $345,000 sale, $1,200 attorney's fee, and $1,278.75 recordation tax. What are the total closing costs?
A$21,416.25✓ Correct
B$20,475
C$18,203.81
D$22,416.25
Explanation
Commission = $345,000 × 5.5% = $18,975. Total = $18,975 + $1,200 + $1,278.75 = $21,453.75.25. Note: recordation tax on $345,000 = $345,000 ÷ $100 × $0.37 = $1,276.50. Total = $18,975 + $1,200 + $1,276.50 = $21,451.50.
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