Finance

A buyer in Alaska uses an FHA loan and makes a down payment of 3.5% on a $280,000 home. What is the amount of the down payment?

A$7,800
B$9,800✓ Correct
C$10,000
D$14,000

Explanation

Down payment = Purchase price × Down payment percentage. $280,000 × 3.5% = $9,800. To solve this, multiply the relevant values: $280,000 at 3.5%.. The correct answer is $9,800.. This is a common calculation on the Alaska real estate exam.

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