Real Estate Math

A home in Idaho sells for $425,000. The buyer obtains a conventional loan with a 20% down payment. What is the loan amount?

A$320,000
B$340,000✓ Correct
C$355,000
D$380,000

Explanation

Down payment = $425,000 × 20% = $85,000. Loan amount = $425,000 − $85,000 = $340,000.

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