Question

You want to buy a $239,000 home and you plan to pay 5% as a down payment and take out a 30 year loan for the rest. How much is the loan amount going to be?

Answer 1

$227,050

Explanation:

The cost of the home = $239,000

Downpayment = 5%

First, calculate the amount to be paid as a downpayment:

`\begin{gathered} Downpayment=5\%\text{ of \$239,000} \\ =(5)/(100)*239,000 \\ =5*2390 \\ =\$11,950 \end{gathered}`

Next, subtract the downpayment from the cost of the home:

`\begin{gathered} Loan\;Amount=Cost-Downpayment \\ =239,000-11,950 \\ =227,050 \end{gathered}`
`\begin{gathered} Loan\;Amount=Cost-Downpayment \\ =239,000-11,950 \\ =\$227,050 \end{gathered}`

The loan amount will be $227,050.