The mortgage company requires a down payment of $11,500 on a $70,000 house. How much down payment would be required on a house costing $87,500?
11,500/70,000 = 0.1643 = 16.43%
87,500 * 0.1643 = ?
$14,367.25
Right.
To find out the down payment required on a house costing $87,500, we can use the concept of down payment percentage. The down payment percentage is the proportion of the house's cost that needs to be paid upfront.
In this case, we can calculate the down payment percentage by dividing the down payment by the house's cost. Let's calculate it for the first scenario:
Down Payment Percentage = (Down Payment / House Cost) * 100
Down Payment Percentage = (11,500 / 70,000) * 100
To find the down payment for a house costing $87,500, we can use the down payment percentage calculated above.
Down Payment = (Down Payment Percentage / 100) * House Cost
Down Payment = (11,500 / 70,000) * 87,500
Now let's calculate the values:
Down Payment Percentage = (11,500 / 70,000) * 100
Down Payment Percentage = 16.43%
Down Payment = (16.43 / 100) * 87,500
Down Payment ≈ $14,361.50
Therefore, the down payment required on a house costing $87,500 would be approximately $14,361.50.