Real Estate Math
An investor buys a property for $800,000 with 25% down. What is the loan amount and equity at purchase?
ALoan $600,000 / Equity $200,000✓ Correct
BLoan $640,000 / Equity $160,000
CLoan $560,000 / Equity $240,000
DLoan $700,000 / Equity $100,000
Explanation
Down payment (equity) = $800,000 × 25% = $200,000. Loan amount = $800,000 - $200,000 = $600,000.
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