Question

The discount points are 3% which represents $2,700. The buyer down payment is 20%. What is the purchase price of the property? (Please show all steps)

Answer 1

Answer: The purchase price of the property is $112,500.

Explanation:

Let the original value of property be 'x'.

Discount rate = 3%

Amount of discount = $2700

According to question, it becomes,

`(3)/(100)* x=2700\\\\x=(2700* 100)/(3)\\\\x=\$90000`

Rate of down payment = 20%

So, Remaining rate of payment = 100-20 = 80%

So, Purchase price of the property would be

`(80)/(100)* x= 90000\\\\0.8* x=90000\\\\x=(90000)/(0.8)\\\\x=\$112,500`

Hence, the purchase price of the property is $112,500.