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If I'm looking at buying a house for $450,000, and want my deposit to be 20%, how much do I need to have saved?

Question

If I'm looking at buying a house for $450,000, and want my deposit to be 20%, how much do I need to have saved?

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Solution

To calculate a 20% deposit on a $450,000 house, you would do the following:

  1. Convert the percentage into a decimal by dividing it by 100. So, 20% becomes 0.20.
  2. Multiply the price of the house by the decimal.

So, 450,0000.20=450,000 * 0.20 = 90,000

Therefore, you would need to have 90,000savedfora2090,000 saved for a 20% deposit on a 450,000 house.

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