A buyer makes a 20% down payment on a $300,000 home. What is the resulting loan amount?
Correct Answer
B) $240,000
A 20% down payment on a $300,000 home equals $60,000 ($300,000 × 0.20). Subtracting the down payment from the purchase price gives a loan amount of $240,000 ($300,000 − $60,000).
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Related Topics & Key Terms
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Related Concepts
Daily rate calculation involves determining the cost or income per day by dividing the total amount by the number of days in the period (usually a year or a month). This is a fundamental step in proration.
The capitalization rate (cap rate) is the ratio of a property's net operating income to its sale price, expressed as a percentage. It is used to estimate value and compare profitability of investment properties. Cap Rate = NOI / Value.
The capitalization rate (Cap Rate) is the rate of return on a real estate investment based on its expected income.
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