Ortiz Peterson
05/23/2023 · Elementary School

You have found a house that you would like to purchase. The amount of the home is \( \$ 225,000 \). You would like to finance the home through your local credit union but they require a \( 10 \% \) down payment. Determine the amount needed for the down payment so that the bank will finance the home purchase. \( \begin{array}{ll}\text { a. } \$ 22,500 & \text { c. } \$ 225,000 \\ \text { b. } \$ 202,500 & \text { d. } \$ 2,250\end{array} \)

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Step-by-step Solution

To determine the amount needed for the down payment, you can calculate \( 10\% \) of the home's price, which is \( \$ 225,000 \). \[ \text{Down Payment} = 10\% \times 225,000 = 0.10 \times 225,000 = 22,500 \] So, the amount needed for the down payment is \( \$ 22,500 \). The correct answer is \( \text{a. } \$ 22,500 \).

Quick Answer

The down payment is \( \$ 22,500 \). Therefore, the correct answer is a. \( \$ 22,500 \).
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