A beauty shop sells for $115,000 and a 16% down payment is made. A 15-year mortgage at 4% is obtained, and closing costs are $4700. Round to the nearest cent, if necessary.
Find the down payment.
Solution:
Given,
Sale amount of beauty shop = $115,000
Down payment % = 16%
Mortage time = 15 year
Interest = 4%
Closing costs = $4700
Down payment = Total sales amount * Percentage of Down payment
Down payment = $115,000 * 16%
= $115,000 * (16/100)
The down payment is $18,400
Result:
The down payment is $18,400