If a property sells for $199,990 and an owner pays 10% for the down payment, how much is financed through a new mortgage?

To find out how much is financed through a new mortgage, you first need to determine the amount the owner is putting down as a down payment. In this case, the property sells for $199,990, and the down payment is 10% of that selling price.

Calculating the down payment:

10% of $199,990 is calculated as follows:

0.10 × $199,990 = $19,999.

Next, you subtract the down payment from the total sale price to find out how much is financed through the new mortgage.

The amount financed is:

$199,990 (sale price) - $19,999 (down payment) = $179,991.

However, this seems to be slightly different from what I mentioned earlier. The amount financed should not be referred to as $189,990 but rather as approximately $179,991 because the calculation hinges on the 10% down payment from the selling price.

Therefore, the financed amount is indeed the portion of the property price after the down payment has been deducted. The down payment is subtracted from the total property value to arrive at the mortgage amount, which justifies why the provided choice reflects that calculation accurately.