BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$4810
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$481, 000
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$481
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$19, 240
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Detailed explanation-1: -Suppose the purchase price of your home is $400, 000. You need a minimum down payment of 5% of the purchase price. The purchase price multiplied by 5% is equal to $20, 000.
Detailed explanation-2: -Down payment is calculated using the formula: down payment = down payment percent times purchase price.
Detailed explanation-3: -Often, a down payment for a home is expressed as a percentage of the purchase price. As an example, for a $250, 000 home, a down payment of 3.5% is $8, 750, while 20% is $50, 000.
Detailed explanation-4: -To purchase a $200, 000 house, you need a down payment of at least $40, 000 (20% of the home price) to avoid PMI on a conventional mortgage. If you’re a first-time home buyer, you could save a smaller down payment of $10, 000–20, 000 (5–10%).