Real Estate Math

A South Dakota buyer makes a down payment of 20% on a $275,000 home. What is the loan amount?

A$55,000
B$220,000✓ Correct
C$200,000
D$275,000

Explanation

Down payment: $275,000 × 20% = $55,000. Loan amount: $275,000 - $55,000 = $220,000. To solve this, multiply the relevant values: $275,000 at 20%.. The correct answer is $220,000.. This is a common calculation on the South Dakota real estate exam.

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