If a buyer puts 10% down on a building sold at $180,000 and is charged a 1% loan origination fee, what is the total amount used for the purchase?

To calculate the total amount used for the purchase, we start by determining the down payment and the loan origination fee.

First, the buyer is putting down 10% on a property that costs $180,000. The down payment is calculated as follows:

• Down Payment = 10% of $180,000

• Down Payment = 0.10 x $180,000 = $18,000

Next, we need to establish the loan amount. Since the buyer will finance the remaining balance through a loan, we find the loan amount by subtracting the down payment from the purchase price:

• Loan Amount = Purchase Price - Down Payment = $180,000 - $18,000 = $162,000

The next step is to calculate the loan origination fee, which is 1% of the loan amount:

• Loan Origination Fee = 1% of $162,000 = 0.01 x $162,000 = $1,620

Finally, the total amount used for the purchase incorporates both the down payment and the loan origination fee:

• Total Amount Used = Down Payment + Loan Origination Fee = $18,000 + $1,620 = $19,620

Thus,