Mr. and Mrs. Donahue want to buy a home valued at $365,000. If they have 21.5% of this amount saved for a down payment, how much will their home loan be?

Their down payment is 21.5% of $365,000: 0.215 × $365,000 = $78,475. Subtract the down payment from the home’s value: $365,000 − $78,475 = $286,525. The home loan will be $286,525, choice B.

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