Question

How much cash MUST a buyer furnish in addition to a $2,500 deposit if the lending institution grants a 90% loan on an $80,000 property?

Answer 1

$5,500

Step-by-step explanation:

The computation of the cash required is shown below:

= Loan amount on property × remaining percentage - additional deposit

= $80,000 × 10% - $2,500

= $8,000 - $2,500

= $5,500

The remaining percentage would be

= Percentage - given percentage

= 100% - 90%

= 10%

The difference which comes is the cash requirement after considering the loan amount and the additional deposit