Real Estate Math

A property in Alaska is purchased for $500,000. The buyer makes a 20% down payment and finances the remainder. What is the mortgage amount?

A$100,000
B$300,000
C$400,000✓ Correct
D$450,000

Explanation

Down payment = $500,000 × 20% = $100,000. Mortgage = $500,000 − $100,000 = $400,000.

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