9. you have been working for five years after college and are ready to buy your first home. homes in the…

9. you have been working for five years after college and are ready to buy your first home. homes in the area you want to live in cost $550,000. the biggest mortgage you can afford is $300,000. what is the down payment you will need to pay? a. $0 b. $200,000 c. $250,000 d. $300,000

9. you have been working for five years after college and are ready to buy your first home. homes in the area you want to live in cost $550,000. the biggest mortgage you can afford is $300,000. what is the down payment you will need to pay? a. $0 b. $200,000 c. $250,000 d. $300,000

Answer

Explanation:

Step1: Determine the formula

Down - payment = Home cost - Mortgage amount.

Step2: Substitute the values

Home cost is ( $550,000) and mortgage amount is ( $300,000). So, down - payment (=550000 - 300000).

Step3: Calculate the result

(550000-300000=$250,000)

Answer:

C. ($250,000)