Question

Martha is buying a house for $107,820. She is making 15 percent down payment and financing the remainder at 6.5 percent for 25 years. How much is she financing?

$96,138
$625.95
$91,647
$583.45

Answer 1

Given:
Total price : 107,820
down payment 15% of the total price.
financing the remainder at 6.5% for 25 years.

How much is she financing? She will finance 85% of the total price.

107,820 * 15% = 16,173
107,820 - 16,173 = 91,647

or
107,820 * (100-15)% = 107,820 * 85% = 91,647

Answer 2

$91,647

Explanation:

To determine the amount that Martha is financing, you have to calculate the amount of the down payment that is a sum that she will give upfront:

$107,820 → 100%

x ← 15%

x=($107,820*15%)/100%= $16,173

Then, yoou have to subtract this amount from the price of the house:

$107,820-$16,173= $91,647

According to this, the answer is that she is financing $91,647.