Finance
A Maine property with a purchase price of $400,000 and a 20% down payment is financed with a 30-year fixed mortgage at 7%. The loan amount is:
A$80,000
B$320,000✓ Correct
C$360,000
D$280,000
Explanation
Loan amount = Purchase price − Down payment = $400,000 − (20% × $400,000) = $400,000 − $80,000 = $320,000.
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