A Florida real estate contract specifies a purchase price of $400,000 with the buyer providing a $25,000 earnest money deposit. The contract requires an additional deposit of 5% of the purchase price within 10 days of the effective date. What is the total deposit amount the buyer must provide?
Correct Answer
C) $45,000
Correct: C - Initial deposit ($25,000) + Additional deposit (5% × $400,000 = $20,000) = $45,000 total. Why not A: This is only the initial deposit, not the total. Why not B: This incorrectly calculates only 10% of the purchase price. Why not D: This incorrectly adds an extra $5,000 to the correct total.
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