Question

select the correct answer.
max is buying a home worth $250,000. he will pay 3 percent in closing costs and 12 percent for a down payment. calculate how much he will pay for each of these one - time fees.
a. he will have to pay $7,500 as closing costs and $30,000 as down payment.
b. he will have to pay $30,000 as closing costs and $7,500 as down payment.
c. he will have to pay $3,000 as closing costs and $75,000 as down payment.

Explanation:

Step1: Calculate closing costs

To find the closing costs, we calculate 3% of $250,000. The formula for percentage calculation is \( \text{Amount} = \text{Total} \times \frac{\text{Percentage}}{100} \). So, closing costs = \( 250000 \times \frac{3}{100} = 250000 \times 0.03 = 7500 \).

Step2: Calculate down payment

To find the down payment, we calculate 12% of $250,000. Using the same percentage formula, down payment = \( 250000 \times \frac{12}{100} = 250000 \times 0.12 = 30000 \).

Answer:

A. He will have to pay $7,500 as closing costs and $30,000 as down payment.