Question

Kevin wants to buy a house that costs $350,000. Kevin will need to go to a bank and obtain a mortgage in order to purchase the house. The bank requires a 25% down payment. a) How much money will Kevin need for a down payment? b) If he wants to borrow the remaining amount, how much of a loan would he have to obtain?

Answer 1

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a) = 25% × $350,000 ÷ 100

= $87,500

b) = $350,000 - $87,500

= $262,500

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