Question

The biggest single purchase that most people make in their lives is the purchase of a home Most home owners have to finance the purchase with an installment loan. Assume you have found your new home and it costs $245,000 You need to have a 20% down payment Determine the 20% down payment and the amount of the mortgage loan

Answer 1

The 20% down payment is $49,000 and the mortgage loan amount is $196,000.

Step-by-step explanation:

To determine the 20% down payment and the amount of the mortgage loan, we can start by finding 20% of the purchase price.

20% of $245,000 = $49,000

So, the down payment would be $49,000.

To find the amount of the mortgage loan, we subtract the down payment from the purchase price.

$245,000 - $49,000 = $196,000

Therefore, the mortgage loan would be $196,000.