The Robinsons decide they would rather purchase the $85,000 home. Their bank requires a 5% down payment to be paid to the seller and a payment of 1 point (1%) of the mortgage at the time of closing.
How much is the down payment?
sorry i don't know this crap is outta my head
To calculate the down payment, first, we need to determine the total amount to be paid. The total amount is the purchase price of the home minus the mortgage payment at the time of closing.
The purchase price of the home is given as $85,000. To calculate the down payment, we need to find 5% of this amount because the bank requires a 5% down payment.
To find 5% of $85,000, we can multiply the purchase price by the decimal representation of 5% (0.05):
$85,000 x 0.05 = $4,250
Therefore, the down payment is $4,250.