Question

A house sells for $147,500 and a 15% down payment is made. A mortgage was secured at 5.5% for 30 years, Round to the nearest cent, if necessary.

Find the down payment.

Answer 1

The down payment for a house selling for $147,500 with a 15% down payment is calculated by multiplying the selling price by 0.15, resulting in a down payment of $22,125.

Step-by-step explanation:

The student is inquiring about the down payment for a house that sells for $147,500 with a down payment percentage of 15%. The down payment is the initial upfront portion of the total purchase price paid by the buyer, typically a percentage of the purchase price. This ensures that the buyer has equity in the property and reduces the loan amount needed from a bank.

To calculate the down payment, you would take 15% of the house's selling price. Here's the step-by-step calculation:

1. Convert the percentage to a decimal: 15% = 0.15
2. Multiply the selling price by the decimal: $147,500 x 0.15
3. The result of this multiplication gives the down payment amount.

Therefore, the down payment would be calculated as follows:

$147,500 x 0.15 = $22,125

Hence, the down payment for the house is $22,125.