Question

Tina is interested in buying a $146,000 home. How big does her down payment need to be in order to avoid PMI?

Answer 1

The answer is 29,200

Answer 2

Her down payment needs to be at least $29,200.

Step-by-step explanation:

If your down payment is 20% of the price of the home, you do not need to pay for private mortgage insurance.

This question can be solved as a rule of three. $146,000, the price of the home, is decimal 1. How much is decimal 0.2, that is, 20%?

146000 - 1

x - 0.2

`x = 0.2*146,000 = 29,200`

Her down payment needs to be at least $29,200.