Real Estate Math

A property is under contract for $525,000. The buyer is putting 20% down. What is the loan amount?

A$400,000

B$415,000

C$420,000✓ Correct

D$430,000

Explanation

Down payment = $525,000 × 0.20 = $105,000. Loan = $525,000 − $105,000 = $420,000. To solve this, multiply the relevant values: $525,000 at 20%.. The correct answer is $420,000.. This is a common calculation on the New Jersey real estate exam.

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