Question

Tom and Tammy wish to buy a home that lists for $450,000. The bank requires a 20% down payment for the mortgage. What is the minimum amount they need to provide for the down payment?

Answer 1

The minimum down payment Tom and Tammy need for the house is 20% of the home's purchase price, which calculates to $90,000 for a home listed at $450,000.

Step-by-step explanation:

To calculate the minimum down payment that Tom and Tammy need for a home listed at $450,000 with a down payment requirement of 20%, we use the following formula:

Down Payment = Purchase Price × Percentage

So for a $450,000 home:

Down Payment = $450,000 × 20%

Down Payment = $450,000 × 0.20

Down Payment = $90,000

The minimum amount they need to provide for the down payment is $90,000.