If a buyer makes a 20% down payment and obtains a $95,000 mortgage, the sales price of the property is $118,750.
What is a mortgage?
A mortgage is a financial arrangement that extends credit to a buyer of the property. It is simply a loan obtained for the purchase of a property like a home.
When a mortgage is granted, the buyer of the property is usually required to make a down payment, which is a part-payment or initial payment to reduce the sales price of the property.
Down payments are usually stated in percentages. Sometimes, they are stated in dollar amounts.
Data and Calculations:
Down payment = 20%
Sales price = 100%
Mortgage = $95,000 (100% - 20%, which is 80%)
Sales price = $118,750 ($95,000/80%)
Thus, if a buyer makes a 20% down payment and obtains a $95,000 mortgage, the sales price of the property is $118,750.
Learn more about down payments and mortgages at https://brainly.com/question/1318711
#SPJ1
