Question

Adam and analisa have found a home for $200,000. it requires a 20% down payment. if they have $50,000 in savings and closing costs are estimated to be $5,000, how much money do they have available to cover extra expenses? do not include commas or $.

Answer 1

Adam and Analisa have $5,000 available to cover extra expenses. After a 20% down payment and paying the estimated closing costs on a $200,000 home, Adam and Analisa will have $5,000 available for extra expenses.

Step-by-step explanation:

To find how much money Adam and Analisa have available to cover extra expenses after making the down payment and paying closing costs, we need to subtract these expenses from their savings.

The down payment is 20% of the home price, which is $200,000. So, 20% of $200,000 is $40,000.

Closing costs are estimated to be $5,000.

Therefore, the total expenses are $40,000 + $5,000 = $45,000.

To calculate the available money for extra expenses, we subtract the total expenses from their savings: $50,000 - $45,000 = $5,000.

Therefore, Adam and Analisa have $5,000 available to cover extra expenses.