The purchase price of a condominium is $121,500. A down payment of 25% is made. The bank charges $720 in fees plus 2.5 points. Find the total of the down payment and the closing costs.

To find the total of the down payment and the closing costs, we will follow these steps:

### Step 1: Calculate the down payment.
The down payment is 25% of the purchase price of the condominium. 

\[
\text{Down Payment} = 25\% \times 121,500 = 0.25 \times 121,500 = 30,375
\]

### Step 2: Calculate the bank points.
The bank charges 2.5 points, where 1 point is equal to 1% of the loan amount. First, we need to calculate the loan amount. Since the down payment is 25%, the loan amount is the remaining 75% of the purchase price:

\[
\text{Loan Amount} = 75\% \times 121,500 = 0.75 \times 121,500 = 91,125
\]

Now, calculate the bank points. 2.5 points is 2.5% of the loan amount:

\[
\text{Points} = 2.5\% \times 91,125 = 0.025 \times 91,125 = 2,278.13
\]

### Step 3: Calculate the closing costs.
The closing costs include the bank's fees of $720 and the cost of the points:

\[
\text{Closing Costs} = 720 + 2,278.13 = 2,998.13
\]

### Step 4: Calculate the total of the down payment and closing costs.
Now, we add the down payment and the closing costs:

\[
\text{Total} = 30,375 + 2,998.13 = 33,373.13
\]

Thus, the total of the down payment and closing costs is **$33,373.13**.

Would you like more details or have any questions?

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Here are 5 related questions:
1. How would the total change if the down payment were 30% instead of 25%?
2. What is the impact of reducing the bank's points to 1.5 points?
3. How would the calculations change if the bank charges a flat fee of $1,000?
4. What is the remaining loan balance after the down payment?
5. How can you calculate the monthly mortgage payment if the interest rate is provided?

**Tip:** When buying property, closing costs typically range from 2-5% of the loan amount.

Learn how to calculate the total of the down payment and closing costs for a $121,500 condominium. The problem involves finding the down payment, loan amount, and closing costs using percentages and interest points. Suitable for high school students in Grades 10-12.

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