A buyer purchases a home for $230,000 with a 15% down payment. What is the loan amount?
Correct Answer
B) $195,500 (the loan amount after the 15% down payment)
A 15% down payment on $230,000 is $230,000 × 0.15 = $34,500. The loan amount is $230,000 − $34,500 = $195,500. Option A represents the down payment itself, a common error when candidates confuse what is being asked.
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