Real Estate Math

A NH investor puts 20% down on a $550,000 apartment building. What is the equity at purchase?

A$110,000✓ Correct
B$440,000
C$55,000
D$135,000

Explanation

Equity at purchase = Down payment = 20% × $550,000 = $110,000. To solve this, multiply the relevant values: $550,000 at 20%.. The correct answer is $110,000.. This is a common calculation on the New Hampshire real estate exam.

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