Real Estate Math

A Tennessee buyer places a $5,000 earnest money deposit on a $250,000 home. What percentage of the purchase price is the earnest money?

A1%
B2%✓ Correct
C2.5%
D5%

Explanation

Earnest money % = $5,000 ÷ $250,000 = 2%. Using the values given ($5,000, $250,000), apply the appropriate formula..

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