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

Before I begin explaining, I want to apologize for the horrible drawing you're about to see :P 
You start off with 250,000 and multiply that by 3%, which is the same thing as .03 in decimal form. |dw:1369856406436:dw|
You then get 7500. 
You then do the same thing for 12%, and you get 30,000 for the down payment.