Finance
A Kentucky property has an existing assumable mortgage with a balance of $120,000 at 4% interest. The sale price is $200,000. The buyer assumes the mortgage and pays the difference in cash. The cash paid at closing is:
A$60,000
B$80,000✓ Correct
C$120,000
D$200,000
Explanation
Cash at closing = Sale Price − Assumed Mortgage = $200,000 − $120,000 = $80,000. To solve this, multiply the relevant values: $120,000 and $200,000 at 4%..
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