The home that you are interested in purchasing is listed at $85,000. In order to get financing, you have to place a 5% down payment. From the given information, determine the amount of the down payment.
Answer
A
$42,500
B
$4,250
C
$425
D
$85,000
Explanation
A 5% down payment is 0.05 of the $85,000 purchase price. Calculate $85,000 × 0.05 = $4,250, so the down payment is $4,250 (choice b).
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