Buisness Math Homework

Question

Rita and Alfred Johnson offered $85,000 for a home that had been priced at $90,000. The Johnsons and the seller agreed on a selling price of $86,500. What is the amount of the mortgage loan if they make a 20 percent down payment?

Answer 1

If 20% is the down payment, the 80% (the remaining portion) the amount of the loan. There's a couple ways to do it, but the fastest is Price, multiplied by the loan percentage. In this case:

$86,500 x 80% = $69,200

Another way is to find out what the down payment is (20%) and multiply that by the selling price. Then subtract the original price.

$86,500 x 20% = $17,300

$86,500 - $17,300 = $69,200