Question

The bank has accepted Harriet's application for a mortgage to buy a property worth $325,500. She has to make a down payment of 20 percent of the purchase price. What is the loan amount? A. $256,000 B. $258,000 C. $260,400

Answer 1

the answer is C because the difference of 325,500 times 20 Percent and 325500 is the loan amount

Answer 2

C. $260,400

Explanation:

Since Harriet has to pay 20% down, this means she is borrowing 100-20 = 80% of the value.

80% = 80/100 = 0.8; this makes the amount borrowed

0.8(325500) = 260,400