Real Estate Math
A North Dakota investor buys a property for $200,000 and finances 80%. How much equity does the investor have at purchase?
A$20,000
B$40,000✓ Correct
C$160,000
D$200,000
Explanation
Financing = $200,000 × 80% = $160,000 (loan). Equity = $200,000 − $160,000 = $40,000 (the down payment equals the initial equity).
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