Question

The home that you are interested in purchasing is listed at $85,000. In order to get financing, you have to place a 5% down payment. From the given information, determine the amount of the down payment. a. $42,500 c. $425 b. $4,250 d. $85,000

Answer 1

B. $4,250

Explanation:

Answer 2

This is the concept of arithmetic. Given that 5% down payment is required for one to purchase a home of $85,000, amount of money required will be:
Amount=(percentage down payment)×(total cost of the house)
percentage down payment=5%
total cost of the house=$85000
Amount=5/100×85000
=$4250
The answer is b] $4250