If the sale price is $180,000, with 20% down, earnest money $4,000, option money $3,000 credited, what is the down payment due at closing?

If the sale price is $180,000, with 20% down, earnest money $4,000, option money $3,000 credited, what is the down payment due at closing?

• A. 29,000
• B. 32,000
• C. 25,000
• D. 36,000

Answer: (A)

The buyer must bring 20% of the sale price as the down payment. 20% of 180,000 is 36,000. Earnest money of 4,000 and option money of 3,000 are credits toward the down payment, so total credits = 7,000. Subtracting the credits from the required down payment gives 36,000 − 7,000 = 29,000. The down payment due at closing is 29,000.

The buyer must bring 20% of the sale price as the down payment. 20% of 180,000 is 36,000. Earnest money of 4,000 and option money of 3,000 are credits toward the down payment, so total credits = 7,000. Subtracting the credits from the required down payment gives 36,000 − 7,000 = 29,000. The down payment due at closing is 29,000.