Question

You have saved 18000 for a down payment on a house. Your bank requires a minimum down payment of 11%. What is the maximum price you can offer for a home in order to have enough money for the down payment

Answer 1

The maximum price of a home you can offer with $18,000 as an 11% down payment is approximately $163,636.36.

Step-by-step explanation:

To determine the maximum price of a home you can offer based on the down payment you have saved, you need to calculate the maximum price that would require an 11% down payment equal to your savings of $18,000.

Let's represent the maximum price of the home as P.

The down payment required is 11% of P, therefore:

0.11 × P = $18,000

To find P, you divide the amount saved by the percentage of the down payment:

P = $18,000 / 0.11

P = $163,636.36 (rounded to two decimal places)

So, the maximum price for a home that requires an 11% down payment, with $18,000 available, is approximately $163,636.36.

Answer 2

Money saved for down payment = 18000

Minimum down payment required by the bank = 11%

Let the maximum price that can be offered be = P

`(11)/(100)P=18000`

`11P=1800000`

P=163636.36

Hence a maximum price of 163636.36 can be offered for a home that can have a down payment of 18000.