Real Estate Math

A North Dakota property is purchased for $185,000 and the buyer takes out a mortgage for 80% of the value. The down payment is:

A$14,800
B$37,000✓ Correct
C$148,000
D$18,500

Explanation

Loan amount = $185,000 × 80% = $148,000. Down payment = Purchase price - Loan amount = $185,000 - $148,000 = $37,000 (which is 20% of $185,000).

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