FinancingLoan_calculationsMEDIUM
A Florida borrower is purchasing a $450,000 home with a 20% down payment. They secure a 30-year fixed-rate mortgage at 6.5% annual interest. What is the principal amount of the loan?
Correct Answer
A) $360,000
Correct: $450,000 × 80% (100% - 20% down) = $360,000. Option B ($370,000) incorrectly calculates the down payment. Option C ($380,000) uses wrong percentage calculations. Option D ($390,000) miscalculates the loan-to-value ratio.
Answer Options
A
$360,000B
$370,000C
$380,000D
$390,000Why This Is the Correct Answer
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Why the Other Options Are Wrong
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Deep Analysis of This Financing Question
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Background Knowledge for Financing
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Real World Application in Financing
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Related Topics & Key Terms
Key Terms:
loan_amountdown_paymentpurchase_calculation
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