Determine the down payment and the amount to be financed for each home described below.
(a) $340,340; 10% down
The down payment is $
The amount to be financed is $
(b) $870,000; 20% down
The down payment is $
The amount to be financed is $
(a) $340,340; 10% down
340,340 * 0.1 = $34,034 is the down payment
340,340 - 34,034 = $306,306 is the amount to be financed.
I'll be glad to check your answer for part (b).
To determine the down payment and the amount to be financed for each home, you need to know the total cost of the home and the down payment percentage.
(a) For a home priced at $340,340 with a 10% down payment:
The down payment is calculated by multiplying the total cost of the home by the down payment percentage:
Down payment = $340,340 * 10% = $34,034
The amount to be financed is the remaining cost after the down payment:
Amount to be financed = Total cost of the home - Down payment
Amount to be financed = $340,340 - $34,034 = $306,306
Therefore, the down payment is $34,034 and the amount to be financed is $306,306.
(b) For a home priced at $870,000 with a 20% down payment:
The down payment is calculated by multiplying the total cost of the home by the down payment percentage:
Down payment = $870,000 * 20% = $174,000
The amount to be financed is the remaining cost after the down payment:
Amount to be financed = Total cost of the home - Down payment
Amount to be financed = $870,000 - $174,000 = $696,000
Therefore, the down payment is $174,000 and the amount to be financed is $696,000.