Question

Charlie purchased a home for $300,000. The mortgage company requires a 10% down payment and Charlie chooses to finance the property for 30 years at 6%. What is Charlie's down payment?

Answer 1

Answer: Charlie's down payment to purchase home is $30,000.

Explanation:

Given that :- Charlie purchased a home for price = $300,000

Mortage company requires a down payment of =10% of price of home

Therefore, Charlie's down payment = 10% of price for home

⇒Charlie's down payment =10% of $300,000

⇒Charlie's down payment =0.1 × $300,000

⇒Charlie's down payment =$30,000.

Thus, Charlie's down payment to purchase home is $30,000.