Question

"Wayne Goodspeed falls in love with and buys a house for a price that is 5% more than the appraised value. He secures a 10% down loan for $220,000 which represents the appraised value less the 10% down. What was the purchase price, and how much did Wayne have to come up with in cash?

Answer 1

Step-by-step explanation:

Let the appraisal value be p.

.90 p = 220000

p = 220000 / .9

= 2,44,444

cash down payment = .1 x 244444

= 24444

Price of the house = 1.05 x 244444 ( 5% more than appraisal value )

= 256666.