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16 Select the correct answer. The Franzes are purchasing a home for 195,000 and they are using a conventional loan. What is the best estimate for what their down payment wil be? A. 5,850 B. 19,500 C. 39,000 D. 48,750

Question

16
Select the correct answer.
The Franzes are purchasing a home for 195,000 and they are using a conventional loan. What is the best estimate for what their down payment wil
be?
A. 5,850
B. 19,500
C. 39,000
D. 48,750

16 Select the correct answer. The Franzes are purchasing a home for 195,000 and they are using a conventional loan. What is the best estimate for what their down payment wil be? A. 5,850 B. 19,500 C. 39,000 D. 48,750

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Answer

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HughProfessional · Tutor for 6 years

Answer

### C. \( \$ 39,000 \)

Explain

## Step 1: Determine a Typical Down Payment Percentage<br />### In conventional loans, a common down payment percentage is typically around 20% of the purchase price.<br />## Step 2: Calculate the Down Payment<br />### Calculate 20% of the home's purchase price: \(0.20 \times 195,000 = 39,000\).
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