A Buyer Agreed to Put Down $5,000 as Earnest Money

question 14

Multiple Choice

A buyer agreed to put down $5,000 as earnest money toward a house he was buying for $97,000. The offer was based upon receipt of an 80% loan from a bank. The attorney's fees were $2,000 and all other buyer costs amounted to $1,500. How much money will the buyer need to pay at settlement?

• A) $14,400
• B) $17,900
• C) $17,700
• D) $22,900

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Definitions:

Stanford-Binet

A standardized test that assesses intelligence and cognitive abilities in individuals, often used to diagnose intellectual disabilities or giftedness.

IQ

Stands for Intelligence Quotient, a score derived from one of several standardized tests designed to assess human intelligence.

Average

A numerical expression of the central or typical value in a set of data, calculated typically as the sum of the values divided by the number of values.

WISC-IV

Wechsler Intelligence Scale for Children, Fourth Edition; a standardized test designed to measure the intellectual ability of children between the ages of 6 and 16.