Final answer:
To calculate the loan amount, subtract the down payment from the purchase price. For a $100,000 home with a 20% down payment, the loan amount would be $80,000. It is crucial to consider affordability and suitable loan amounts when dealing with auto or home loans.
Step-by-step explanation:
Calculating the Loan Amount
To calculate the loan amount, you need to subtract the down payment from the total price of the house or vehicle. Assuming the defined names for the price and down payment are 'Price' and 'DownPayment' respectively, the formula to calculate the loan amount would be:
LoanAmount = Price - DownPayment
For example, if a house costs $100,000 and the standard down payment is 20%, the down payment would be $20,000. Therefore, the loan amount would be calculated as follows:
LoanAmount = $100,000 - $20,000 = $80,000
When considering auto loans or home loans, it is vital to understand how much you can afford and determine the loan amount that would be suitable for you, considering factors like the loan term and monthly payments.