Question

Franklin Porter purchased a waterbed for $4,500. He made a 20 percent down payment and financed the remainder. What amount did he finance?

Answer 1

To find the amount that Franklin financed, you will calculate the amount he put down and subtract that from the original price because that is what he still owes.

0.2 x $4500 = $900
$4500 - $900 = $3600.

Porter financed $3600.

You also multiply 0.8 x $4500 because this represents the part out of 100% he still owes. You will get the same answer this way.