Question

you have found a house that you would like to purchase. the amount of the home is $525,000. you would like to finance the home through your local credit union but they require a 8% down payment. determine the amount needed for the down payment so that the bank will finance the home purchase
a. $525,000\t\t\t\tc. $42,000
b. $420,000\t\t\t\td. $4,200

please select the best answer from the choices provided

○ a
○ b
○ c
○ d

Explanation:

Step1: Understand the problem

We need to find the 8% down payment on a $525,000 home. The formula for finding a percentage of a number is \( \text{Percentage} \times \text{Total Amount} \).

Step2: Calculate the down payment

First, convert 8% to a decimal by dividing by 100: \( 8\% = 0.08 \).
Then multiply this decimal by the home price: \( 0.08 \times 525000 \).
Calculating \( 0.08 \times 525000 = 42000 \).

Answer:

C. $42,000