What is the loan amount on the 85,000 building after the 10% down payment?

What is the loan amount on the 85,000 building after the 10% down payment?

• A. 66,000
• B. 76,500
• C. 86,000
• D. 90,000

Answer: (B)

When you buy a property, the loan amount is what's financed after you make the down payment. Here, the down payment is 10% of the purchase price: 0.10 × 85,000 = 8,500. Subtracting that from the price gives the loan amount: 85,000 − 8,500 = 76,500. An equivalent way to see it is 85,000 × (1 − 0.10) = 76,500. This matches the correct choice. The other numbers would come from miscalculating the down payment or adding it back, rather than subtracting it.

When you buy a property, the loan amount is what's financed after you make the down payment. Here, the down payment is 10% of the purchase price: 0.10 × 85,000 = 8,500. Subtracting that from the price gives the loan amount: 85,000 − 8,500 = 76,500. An equivalent way to see it is 85,000 × (1 − 0.10) = 76,500. This matches the correct choice. The other numbers would come from miscalculating the down payment or adding it back, rather than subtracting it.