Real Estate Math

An investor buys a rental property for $450,000 with a 20% down payment. What is the loan amount?

A$90,000
B$360,000✓ Correct
C$400,000
D$420,000

Explanation

Down payment = $450,000 × 20% = $90,000. Loan amount = $450,000 - $90,000 = $360,000. To solve this, multiply the relevant values: $450,000 at 20%.. The correct answer is $360,000.. This is a common calculation on the Arizona real estate exam.

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