A buyer makes a 20% down payment on a $180,000 home. What is the loan amount?
Correct Answer
C) $144,000
Down payment = $180,000 × 0.20 = $36,000. Loan amount = $180,000 - $36,000 = $144,000.
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Related Topics & Key Terms
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Net Operating Income (NOI) is the revenue a property generates after deducting all operating expenses.
Converting a percentage to a decimal involves dividing the percentage value by 100.
In real estate, property value can be estimated by dividing the Net Operating Income (NOI) by the Capitalization Rate (Cap Rate).
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