A buyer purchases a home for $258,000 with a 20% down payment. What is the amount of the mortgage loan?
Correct Answer
B) $206,400
Down payment = $258,000 × 0.20 = $51,600. Mortgage loan = $258,000 − $51,600 = $206,400. Option A ($51,600) represents the down payment itself, making it a plausible distractor for students who confuse the two amounts.
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