Question

The bank has accepted Mrs. Hudson's application for a mortgage to buy property worth $375,575. She has to pay 19 percent of the purchase price in cash before closing the deal. Calculate the loan amount the bank will give her.

a $302,415.75
b $304,215.75
c $340,215.75

Answer 1

b

Explanation:

Answer 2

Answer: Option 'b' is correct.

Explanation:

Since we have given that

Value of property = $375,575

Percentage of the purchase price she need to pay = 19%

Amount that she need to pay is given by

`(19)/(100)* 375,575\\\\=\$71359.25`

Amount of loan the bank will give her is given by

`375,575-71359.25\\\\=\$304215.75`

Hence, Option 'b' is correct.