A house is sold for $150,000 and the buyer makes a 20% down payment with an 80% loan. What is the down payment?

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Multiple Choice

A house is sold for $150,000 and the buyer makes a 20% down payment with an 80% loan. What is the down payment?

Explanation:
Down payment equals the portion of the purchase price paid upfront when financing. Here the buyer puts down 20% of the $150,000 price. Compute: 0.20 × 150,000 = 30,000. So the down payment is $30,000. The remaining 80% would be financed (about $120,000) if that helps visualize the deal. The other numbers don’t match 20% of the price, so they aren’t correct.

Down payment equals the portion of the purchase price paid upfront when financing. Here the buyer puts down 20% of the $150,000 price. Compute: 0.20 × 150,000 = 30,000. So the down payment is $30,000. The remaining 80% would be financed (about $120,000) if that helps visualize the deal. The other numbers don’t match 20% of the price, so they aren’t correct.

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