Question

Alice took out an 80/20 mortgage on a $232,000 home. What is the amount

financed under the first mortgage?

Answer 1

B. $185,600

Explanation:

80/20 mortgage means pay 20% down payment and 80% finance amount of home value.

Home value = $232,000

Now, we need to find finance amount from this hone value of $232,000

Let's calculate the 80% of $232,000 as finance amount;

Finance amount = 80% of 232000

Finance amount = 0.80 x 232000

Finance amount = 185,600