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.

Question

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.

anonymous · Answer

The best way to solve this is to remember that to find 10% of something, you move the decimal one place to the left. Since you need 3% and 12%, take that one step farther and see that if moving the decimal one place left gives 10%, then moving it 2 places will give 1%, since it is easy to find 1%. Since you can find 1% and 10% easily, use this and some addition and multiplication to get 3% or 12%. 

For example, 10% of $250,000.00 you move the decimal one place left, so it becomes $25,000.00