Question

Sam took out an 80/20 mortgage on a $205,000 home. What is the amount financed under the first mortgage

a.$164,000
b.$41,000
c.$205,000
d$120,000

Answer 1

Given condition is: Sam took out an 80/20 mortgage on a $205,000 home.

Here, 80/20 refers to 80% mortgage amount means it will be paid as mortgage and 20% loan amount.

So, to find the amount financed under the first mortgage, we will find 80% of 205000.

`(80)/(100)*205000`

= $164000

Hence, option A is the correct answer.