Final Answer:
The required down payment is $6,300, calculated as 10% of the townhouse cost. This standard percentage ensures Manuel can secure the property while financing the rest through a mortgage. So the correct option is (a) $6,300.
Step-by-step explanation:
Manuel wants to buy a townhouse for $63,000, and the bank requires a 10% down payment. To find the down payment amount, we calculate 10% of the total cost:
Down Payment =Total Cost× Percentage/ 100
Substituting in the given values:
Down Payment = $63,000 ×10/100
Calculating this gives us:
Down Payment = $63,000 × 0.1 = $6,300
Therefore, the correct answer is (a) $6,300.
In summary, the down payment is calculated by multiplying the total cost of the townhouse by the down payment percentage. In this case, Manuel needs to make a $6,300 down payment.
It's important for homebuyers to understand down payments as they directly impact the initial amount required to secure a property. In this scenario, the 10% down payment is a common requirement, and for Manuel, it amounts to $6,300. This understanding helps individuals plan and manage their finances effectively when entering into a mortgage agreement.So the correct option is (a) $6,300.