Question 1185144: Is it C? I want to check my answer.
The Franzes are purchasing a home for $195,000, and they are using a conventional loan. What is the best estimate for what their down payment will be?
A. $5,850
B. $19,500
C. $39,000
D. $48,750
Found 2 solutions by greenestamps, MathTherapy:
Answer by greenestamps(13200)   (Show Source):
You can put this solution on YOUR website!
Your answer C is 20% of the sale price.
So if your definition of "conventional loan" means the down payment is 20%, then your answer is right.
But I don't believe a 20% down payment is required for a conventional loan.
Answer by MathTherapy(10552)  (Show Source):
You can put this solution on YOUR website! Is it C? I want to check my answer.
The Franzes are purchasing a home for $195,000, and they are using a conventional loan. What is the best estimate for what their down payment will be?
A. $5,850
B. $19,500
C. $39,000
D. $48,750
A conventional loan calls for a 3% down payment.
10% of $195,000 is $19,500, so 3% must be about  of that. Plus, there's only 1 amount in the list that's less than $19,500.
Quite SMPLE, isn't it?
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