Real Estate Math

A buyer in NC makes a 5% down payment on a $320,000 home. The down payment amount and loan amount are:

A$304,000✓ Correct
B$32,000 down; $288,000 loan
C$24,000 down; $296,000 loan
D$20,000 down; $300,000 loan

Explanation

Down payment = $320,000 x 0.05 = $16,000. Loan = $320,000 - $16,000 = $304,000. To solve this, multiply the relevant values: $320,000 at 5%.. The correct answer is $304,000.. This is a common calculation on the North Carolina real estate exam.

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