A buyer has deposited 10% of the sales price of a condominium with the broker as earnest money, and the bank has agreed to lend

Question

3 years ago

10

$51,000, which is 80% of the sales price. How much additional funding must the buyer provide to complete this transaction?

1 answer:

lina2011 [118] · Answer 1 · 2022-02-02T17:49:07+03:00

Answer: $6375

Explanation:

Since the bank has agreed to lend $51,000, which is 80% of the sales price, then the sales price will be:

= $51,000/80%

= $51,000/0.8

= $63750

The additional funding must the buyer provide to complete this transaction will be:

= $63750 - $51000 - (10% × $63750)

= $63750 - $51000 - $6375

= $6375