Determine the down payment and the amount to be financed for each home described below.
(a) $380,380; 10% down
0.1 * $380,380 = $38,000 down
$380,380 - 38,000 = amount to be financed
To determine the down payment and the amount to be financed for the home, we need to apply the given down payment percentage to the total cost of the home.
(a) The total cost of the home is $380,380 and the down payment is 10% of this amount.
To find the down payment, we multiply the total cost by the down payment percentage, which can be represented as:
Down payment = Total cost × Down payment percentage
In this case, the down payment percentage is 10%, which is equivalent to 0.10 in decimal form. So, the down payment would be:
Down payment = $380,380 × 0.10 = $38,038
The down payment for this home would be $38,038.
To find the amount to be financed, we subtract the down payment from the total cost:
Amount to be financed = Total cost - Down payment
In this case:
Amount to be financed = $380,380 - $38,038 = $342,342
The amount to be financed for this home would be $342,342.