Real Estate Math
A Nebraska first-time buyer qualifies for a $210,000 mortgage. With 5% down, what is the maximum purchase price the buyer can afford?
A$221,053✓ Correct
B$220,500
C$215,000
D$225,000
Explanation
If loan = 95% of purchase price: $210,000 = 0.95 × P. P = $210,000 ÷ 0.95 = $221,053. To solve this, multiply the relevant values: $210,000 at 5%.. The correct answer is $221,053.. This is a common calculation on the Nebraska real estate exam.
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