Questions: The purchase price of a condominium is 120,500. A down payment of 21% is made. The bank charges 720 in fees plus 3 1/2 points. Find the total of the down payment and the closing costs. (Round your answer to the nearest cent.)

The purchase price of a condominium is 120,500. A down payment of 21% is made. The bank charges 720 in fees plus 3 1/2 points. Find the total of the down payment and the closing costs. (Round your answer to the nearest cent.)

Transcript text: The purchase price of a condominium is $\$ 120,500$. A down payment of $21 \%$ is made. The bank charges $\$ 720$ in fees plus $3 \frac{1}{2}$ points. Find the total of the down payment and the closing costs. (Round your answer to the nearest cent.)

Solution

Solution Steps

Step 1: Calculate the Down Payment Amount

To calculate the down payment amount, multiply the purchase price (\$120500) by the down payment percentage (21%). \[\text{Down Payment Amount} = 120500 \times 0.21 = \$25305\]

Step 2: Calculate the Points Cost

Next, calculate the points cost by multiplying the purchase price by the points percentage (3.5%). \[\text{Points Cost} = 120500 \times 0.035 = \$4217.5\]

Step 3: Calculate the Total Cost

Finally, add the down payment amount, fixed fees, and the points cost to find the total cost. \[\text{Total Cost} = \$25305 + \$720 + \$4217.5 = \$30242.5\]