Question

A lender agrees to loan you 80% of the first $ 60,000 and 70% of the remainder of the purchase price of a home. The contract price of the house you want is $ 80,000. How much down payment do you need?
a. 22000b. 18000c. 16000d. 14000

Answer 1

Answer:

b. $18,000

Explanation:

For computing the down payments, first we have to determine the lending amount and remaining amount which are shown below:

Lending amount = $60,000 × 80% = $48,000

Remaining amount = ($80,000 - $60,000) × 70% = $14,000

Total amount equals to

= $48,000 + $14,000

= $62,000

Now the down payment would be

= $80,000 - $62,000

= $18,000