Question

A house sells for $160,000 and the buyer makes a 12% down payment. Determine the down payment amount and the amount financed.

Answer 1

We are given that a down payment of 12% from a total price of $160000 was made. To determine the amount paid we use the following relationship:

`160000*(12)/(100)`

Solving the operations:

`160000*(12)/(100)=19200`

Therefore, the down payment was $19200.

The amount financed is the remaining amount, that we subtract the down payment from the original price:

`160000-19200=140800`

Therefore, the amount financed was $140800