Question

Working with Percents A lender requires a minimum down payment of 16% of the value of the home. You have $25,000 cash available to use as a down payment toward a home. Determine the maximum home value that you can finance. You can afford to finance a home worth at most s Round your answer to the nearest dollar.

Answer 1

maximum amount that can be financed is $156,250

Explanation:

Data provided:

Minimum down payment required by the lender = 16% of the value of home

Available cash in hand = $25,000

Now,

the maximum amount of down payment that can be paid = $25,000

let the maximum amount that can be financed is 'x'

also,

16% of x = $25,000

or

0.16 × x = $25,000

or

x =
`\frac{\$\textup{25,000}}{\textup{0.16}}`

or

x = $156,250

Hence, the maximum amount that can be financed is $156,250