Real Estate Math
A Utah investor uses leverage by putting 20% down on a $500,000 property. The equity at purchase is:
A$100,000✓ Correct
B$400,000
C$80,000
D$125,000
Explanation
Equity at purchase = Down payment = 20% × $500,000 = $100,000. To solve this, multiply the relevant values: $500,000 at 20%.. The correct answer is $100,000.. This is a common calculation on the Utah real estate exam.
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