Question

Kris and Nathan put a down payment of 20% on the purchase of their house, and then financed

$150,000. What was the purchase price of the house

Answer 1

Answer: $187,500

Explanation:

Let x = Purchasing price of house.

Given: Down payment = 20% of x

= 0.20x [20% = 0.20]

The amount financed = Purchasing price - Down payment

= x-0.20x

=(1-0.20)x

= 0.80x

As per given,

`0.80x=150000\\\\\Rightarrow x=(150000)/(0.8)\\\\\Rightarrow\ x=(1500000)/(8)\\\\\Rightarrow\ x=187500`

Hence, the purchase price of the house =$187,500