Real Estate Math

A West Virginia property is listed at $250,000. The buyer obtains a loan for 80% of the purchase price. How much is the down payment?

A$40,000
B$50,000✓ Correct
C$60,000
D$75,000

Explanation

Loan amount = $250,000 × 80% = $200,000. Down payment = $250,000 - $200,000 = $50,000. To solve this, multiply the relevant values: $250,000 at 80%.. The correct answer is $50,000.. This is a common calculation on the West Virginia real estate exam.

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