Question

A buyer bought a mansion for $1,100,000 and received a loan for 80% of the value. The property was appraised for $1,000,000. How much did the buyer have to put down to get this loan?

a) $100,000
b) $200,000
c) $900,000
d) $880,000

Answer 1

The buyer had to put down $300,000 to get the loan.

Step-by-step explanation:

To calculate how much the buyer had to put down to get the loan, we first need to find out the loan amount. The buyer received a loan for 80% of the value, which is $1,000,000. So, the loan amount is 80% of $1,000,000, which is $800,000.

To find out the down payment amount, we subtract the loan amount from the purchase price. The purchase price is $1,100,000, and the loan amount is $800,000. So, the down payment amount is $1,100,000 - $800,000 = $300,000.

The buyer had to put down $300,000 to get the loan.