Real Estate Math

A property sells for $275,000. The buyer puts 20% down and finances the rest. What is the loan amount?

A$55,000
B$175,000
C$200,000
D$220,000✓ Correct

Explanation

Down payment = $275,000 × 0.20 = $55,000. Loan amount = $275,000 − $55,000 = $220,000. To solve this, multiply the relevant values: $275,000 at 20%.. The correct answer is $220,000.. This is a common calculation on the Kentucky real estate exam.

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