Jenine wants to purchase a home for $110,000. Her bank is offering her 6% interest rate for a 30 year mortgage. Jenine has saved
1 answer:
L is the loan amount. We know that Jenine has saved a 15% downpayment, meaning she will pay 15% of house price at the time of borrowing.
After 15% is subtracted from the house price, the remaining amount is 85%, meaning Jenine will now only need to borrow 85% of the house price to purchase the house.
85% of the house price is
Hence, the loan amount is L = $93, 000.
Jenine paid 15% of the house price, right?
Now she has only 100% - 15% = 85% of the price left to pay.
Do you agree?
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