Question

6.David and Sheryl Willits have saved $66,400 for a down payment on their futurehome. Their bank has informed them that the minimum down payment requiredto obtain a mortgage loan is 25%. Is their down payment large enough to purchasea home for $270,000? Why or why not?

Answer 1

In order to determine if the money saved by David and Sheryl is enough, calculate the 25% of $270,000, as follow:

`(25)/(100)\cdot270,000=67,500`

The previous result mean that David and Sheryl must have at least of $67,500 to obtain a mortgage loan for the house. They have $66,400, then, they don't have the enough money to acces to the mortgage loan.