Real Estate Math

A Michigan buyer puts 10% down on a $260,000 home. What is the loan amount?

A$234,000✓ Correct
B$26,000
C$240,000
D$250,000

Explanation

Down payment = 10% x $260,000 = $26,000. Loan amount = $260,000 - $26,000 = $234,000. To solve this, multiply the relevant values: $260,000 at 10%.. The correct answer is $234,000.. This is a common calculation on the Michigan real estate exam.

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