Real Estate Math

A Hawaii home was appraised at $680,000. The bank will loan 78% of the appraised value. What is the required down payment on a $700,000 purchase price?

AA. $149,600✓ Correct
BB. $154,400
CC. $196,000
DD. $140,000

Explanation

Loan = $680,000 × 0.78 = $530,400.

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