Question

In 2010 you purchased your home for $264,000. Today, you sold your home for $389,000. You have purchased a new home for $428,000 and have put down a deposit of 20%. How much money do you have left over from the selling of your home ?

Answer 1

$39,400

Explanation:

Calculate the profit from the sale: Selling price - Original purchase price = $389,000 - $264,000 = $125,000.

Calculate the deposit paid for the new home: 20% of the purchase price = 0.2 x $428,000 = $85,600.

Subtract the deposit paid from the net proceeds of the sale: $125,000 - $85,600 = $39,400 (money left over).

Answer 2

Money left over = -$388,600

Explanation:

To calculate how much money you have left over from the selling of your home, we need to first calculate the profit you made from selling your home, and then subtract the cost of the new home and the down payment.

Profit from selling the home = selling price - purchase price

Profit = $389,000 - $264,000

Profit = $125,000

Next, we need to subtract the cost of the new home and the down payment:

Cost of new home = $428,000

Down payment = 20% of $428,000 = $85,600

Total cost of new home and down payment = $428,000 + $85,600 = $513,600

Finally, we can calculate how much money you have left over:

Money left over = Profit - (Cost of new home + Down payment)

Money left over = $125,000 - $513,600

Money left over = -$388,600

Since the result is negative, it means you do not have any money left over and you need to cover the difference of $388,600.