Question

The Smith family is selling their home for $250,000 with a required down payment of 5%. Find the amount of the required down payment and the mortgage.

Down Payment:
Mortgage:

Answer 1

Down payment is $12,500.

Mortgage = $237,500

Explanation:

The required down payment is 5% of the selling price of the house, which is $250,000.

Down payment = 5% of $250,000 = 0.05 x $250,000 = $12,500

Therefore, the required down payment is $12,500.

To find the amount of the mortgage, we need to subtract the down payment from the selling price of the house.

Mortgage = Selling price of the house - Down payment

Mortgage = $250,000 - $12,500

Mortgage = $237,500

Therefore, the amount of the mortgage is $237,500.