FinanceQuestion 70 of 100
A property sells for $250,000 and the buyer makes a 20% down payment. What is the loan amount?
a.$50,000
b.$230,000
c.$220,000
d.$200,000
Explanation
A 20% down payment on $250,000 is $250,000 x 0.20 = $50,000. The loan amount is the price minus the down payment: $250,000 - $50,000 = $200,000. The 80% financed corresponds to an 80% loan-to-value ratio.
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