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2 years ago

If a buyer makes a 20% down payment and obtains a $95,000 mortgage, what is the sales price of the property?

1 answer:

7 0

If a buyer makes a 20% down payment and obtains a $95,000 mortgage, the sales price of the property is <u>$118,750</u>.

<h3>What is a mortgage?</h3>

A mortgage is a financial arrangement that extends credit to a buyer of the property. It is simply a loan obtained for the purchase of a property like a home.

When a mortgage is granted, the buyer of the property is usually required to make a down payment, which is a part-payment or initial payment to reduce the sales price of the property.

Down payments are usually stated in percentages. Sometimes, they are stated in dollar amounts.

<h3>Data and Calculations:</h3>

Down payment = 20%

Sales price = 100%

Mortgage = $95,000 (100% - 20%, which is 80%)

Sales price = $118,750 ($95,000/80%)

Thus, if a buyer makes a 20% down payment and obtains a $95,000 mortgage, the sales price of the property is <u>$118,750</u>.

Learn more about down payments and mortgages at brainly.com/question/1318711

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