if someone buys a home for $200,000 and makes a 20 percent down - payment, that person will have to\npay…

if someone buys a home for $200,000 and makes a 20 percent down - payment, that person will have to\npay $20,000 up front.\npay $40,000 up front.\ntake out a mortgage for $200,000.\ntake out a mortgage for $220,000.

if someone buys a home for $200,000 and makes a 20 percent down - payment, that person will have to\npay $20,000 up front.\npay $40,000 up front.\ntake out a mortgage for $200,000.\ntake out a mortgage for $220,000.

Answer

Explanation:

Step1: Calculate down - payment amount

The down - payment is 20% of the home price. The home price is $200,000. The formula for calculating a percentage of a number is $P=\text{Percentage}\times\text{Total amount}$. So, the down - payment amount $D = 0.2\times200000$. $D=0.2\times200000 = 40000$

Step2: Calculate mortgage amount

The mortgage amount $M$ is the remaining amount after the down - payment. So, $M=\text{Home price}-\text{Down - payment}$. Since the home price is $200,000$ and the down - payment is $40,000$, then $M = 200000 - 40000=160000$.

Answer:

pay $40,000$ up front.