Real Estate Math

A Kansas homebuyer puts 3.5% down on an FHA loan to purchase a $195,000 home. How much is the down payment?

A$5,850
B$6,825✓ Correct
C$7,800
D$9,750

Explanation

$195,000 × 0.035 = $6,825. To solve this, multiply the relevant values: $195,000 at 3.5%.. The correct answer is $6,825.. This is a common calculation on the Kansas real estate exam.

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