A buyer purchases a home for $250,000 with a 20% down payment. What is the loan amount?
Correct Answer
B) $200,000
A 20% down payment on a $250,000 home equals $50,000 ($250,000 × 0.20). The loan amount is the purchase price minus the down payment: $250,000 − $50,000 = $200,000.
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