Question

he list below shows the closing costs on a home loan amount of $185,000.
Closing Cost
Charge
Loan origination
$275
Title insurance
$528
Attorney's fees
$750
Appraisal
$275
Recording fees
$121

If the buyer also paid a 3% real estate agent commission, what was the total amount paid at closing?
a.
$2,499
b.
$5,550
c.
$6,499
d.
$7,499

Answer 1

First add the listed charges:
275 + 528 + 750 + 275 + 121 = $1,949

Compute the 3% commission on $185,000:
0.03 × 185,000 = $5,550

Total paid at closing:
1,949 + 5,550 = $7,499

Answer: d. $7,499