Georgia MLS Practice Exam 2025 – Complete Preparation Tool

Question: 1 / 400

In a transaction where the purchase price is $300,000 and the buyer puts down 20%, what is the amount financed?

$240,000

To determine the amount financed in a real estate transaction, you first calculate the down payment and then subtract that amount from the purchase price of the property.

In this scenario, the purchase price is $300,000. The buyer is making a down payment of 20%. To find the down payment amount, you multiply the purchase price by the down payment percentage:

Down payment = Purchase price × Down payment percentage

Down payment = $300,000 × 0.20 = $60,000.

Now, to find the amount financed, you subtract the down payment from the purchase price:

Amount financed = Purchase price - Down payment

Amount financed = $300,000 - $60,000 = $240,000.

Therefore, the amount financed in this transaction is $240,000, making it the correct answer. This process highlights the importance of understanding how down payments directly affect the amount that needs to be financed through a loan.

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$270,000

$300,000

$360,000

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