Question

Sean Duncan wants to purchase new desk for his office staff. The bank Grants him a loan for $22,000 requiring a down payment of 20%. What amount does Dobson finance?

Answer 1

$4,400

Explanation:

The bank grants Duncan a loan of $22,000 but requires him to make a down payment of 20%, meaning Duncan has to pay 20% of the loan at hand.

Now, after Duncan has paid 20% of the loan a the time of borrowing the amount he has left to loan is 80% of the original amount.

80% of $22,000 is

`(80)/(100)*22,000`
`=17,600.`

Hence, the amount Duncan finances is

`22,000-17600=4400`