Question

A house sells for $200,000 and the buyer makes a 16% down payment. determine the down payment amount and the amount financed.

Answer 1

The 16% down payment on a $200,000 house is $32,000, leaving $168,000 to be financed through a mortgage or other lending.

Step-by-step explanation:

If a house sells for $200,000 and the buyer makes a 16% down payment, the down payment would be the house's sale price multiplied by the down payment percentage. To calculate this, you can use the formula:

Down Payment = Sale Price × Down Payment Percentage

In this scenario:

Down Payment = $200,000 × 0.16

Down Payment = $32,000

Once the down payment is determined, the amount financed would be the remaining balance after subtracting the down payment from the sale price.

Amount Financed = Sale Price - Down Payment

Amount Financed = $200,000 - $32,000

Amount Financed = $168,000