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he price of a home is ​$189 comma 000. The bank requires a​ 20% down payment and three points at the time of closing. The cost of the home is financed with a​ 30-year fixed-rate mortgage at 6.5​%. Find the required down payment.

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he price of a home is ​$189 comma 000. The bank requires a​ 20% down payment and three points at the time of closing. The cost of the home is financed with a​ 30-year fixed-rate mortgage at 6.5​%. Find the required down payment.

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Solution

The down payment is calculated as a percentage of the home price. In this case, the bank requires a 20% down payment.

Step 1: Convert the percentage to a decimal by dividing by 100. So, 20% becomes 0.20.

Step 2: Multiply the home price by the decimal.

So, 189,0000.20=189,000 * 0.20 = 37,800

Therefore, the required down payment is $37,800.

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