If Nico purchases a home for $625,000 with an earnest money deposit of 8%, how much money should he bring to closing if his closing costs are 5% of the purchase price?

To determine how much money Nico should bring to closing, we first need to calculate the earnest money deposit and the closing costs, and then sum these amounts.

Nico's purchase price for the home is $625,000. The earnest money deposit is 8% of the purchase price. To find the earnest money amount, we calculate:

[

Earnest Money = 625,000 \times 0.08 = 50,000

]

Next, we need to calculate the closing costs, which are 5% of the purchase price:

[

Closing Costs = 625,000 \times 0.05 = 31,250

]

Now, to find out how much Nico needs to bring to closing, we take the total closing costs and add them to the earnest money already paid. However, Nico does not need to pay the earnest money again at closing, because it is already included in his payment towards the purchase of the home. Therefore, he will need to pay:

[

Total Amount to Bring = Closing Costs = 31,250

]

Finally, it appears there is an inconsistency with the provided answer choices as they do not align with our calculations. It may involve misunderstandings or whether