Sure, let's solve this step-by-step.
Laurence took out an 80/20 mortgage on a home priced at [tex]$345,000. This means that 80% of the home price is financed through the first mortgage, while the remaining 20% could be from other sources, like a second mortgage or a down payment.
To find the amount financed under the first mortgage, follow these steps:
1. Determine the percentage of the home price financed by the first mortgage:
- This is given as 80%.
2. Convert the percentage to a decimal for calculation:
- 80% = 80 / 100 = 0.80
3. Multiply the home price by the decimal representing the percentage:
- Home price = $[/tex]345,000
- Amount financed = Home price × 0.80
- Amount financed = [tex]$345,000 × 0.80
4. Calculate the result:
- Amount financed = $[/tex]276,000
Therefore, the amount financed under the first mortgage is:
A. $276,000
