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Use the table to answer the question. The table shows the Final Settlement Statement for the purchase of a home. Final Settlement Statement Contract sales price $118,000.00 Settlement charges to borrower $3,491.04 Gross amount due from borrower Add contract sales price and settlement charges to borrower Deposit or earnest money $500.00 Principal amount of new loan $94,400.00 County taxes (half year) $605.36 Total paid by borrower Add deposit or earnest money, principal amount of new loan, and county taxes (half year) Gross amount due from borrower Add less amount paid by borrower and cash from borrower Less amount paid by borrower $95,505.36 Cash from borrower $25,985.68 How much cash did the borrower pay upfront? (1 point) Responses $605.36 $605.36 $3,491.04 $3,491.04 $25,985.68 $25,985.68 $95,505.36 $95,505.36 Skip to navigation

1 answer

To determine how much cash the borrower paid upfront, we should look at the relevant values given in the Final Settlement Statement.

The cash paid upfront by the borrower typically includes the following amounts:

  • Deposit or earnest money: $500.00
  • Cash from borrower: $25,985.68

Now, let's add these two amounts together to find the total cash paid upfront by the borrower:

\[ \text{Total cash paid upfront} = \text{Deposit} + \text{Cash from borrower} = 500.00 + 25,985.68 = 26,485.68 \]

This total cash amount shows how much the borrower paid before the loan amount was applied. However, the answer choices available include:

  1. $605.36
  2. $3,491.04
  3. $25,985.68
  4. $95,505.36

Given the correct interpretation of "upfront cash," it most accurately reflects the cash from the borrower, which in this case is $25,985.68. Therefore, the answer is:

$25,985.68