Question

You want to buy a $239,000 home and you plan to pay 5% as a down payment and take out a 30 year loan for the rest. How much is the loan amount going to be?

Answer 1

Answer:

$227,050

Explanation:

The cost of the home = $239,000

Downpayment = 5%

First, calculate the amount to be paid as a downpayment:

$\begin{gathered} Downpayment=5\%\text{ of \ 239,000} \\ =\frac{5}{100}\times239,000 \\ =5\times2390 \\ =\ 11,950 \end{gathered}$

Next, subtract the downpayment from the cost of the home:

$\begin{gathered} Loan\;Amount=Cost-Downpayment \\ =239,000-11,950 \\ =227,050 \end{gathered}$$\begin{gathered} Loan\;Amount=Cost-Downpayment \\ =239,000-11,950 \\ =\ 227,050 \end{gathered}$

The loan amount will be $227,050.