Real Estate Math
A buyer makes a $25,000 earnest money deposit on a $625,000 purchase. What percentage of the purchase price does the earnest money represent?
A3%
B4%✓ Correct
C5%
D6%
Explanation
Earnest money as % of price = $25,000 ÷ $625,000 = 0.04 = 4%. Using the values given ($25,000, $625,000), apply the appropriate formula.. The correct answer is 4%.. This is a common calculation on the Washington real estate exam.
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