Real Estate Math
A buyer purchases a Newport vacation home for $850,000. They put 25% down and finance the balance. What is the loan amount?
A$212,500
B$637,500✓ Correct
C$625,000
D$600,000
Explanation
Down payment: $850,000 × 0.25 = $212,500. Loan amount: $850,000 − $212,500 = $637,500. To solve this, multiply the relevant values: $850,000 at 25%.. The correct answer is $637,500.. This is a common calculation on the Rhode Island real estate exam.
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