Question

A family paid $30,600 as a down payment for a home. If this represents 17% of the price of the home, find the price of the home.

a) $180,000
b) $200,000
c) $179,411.76
d) $150,000

Answer 1

The price of the home is found by dividing the down payment by the percentage represented in decimal form. Converting 17% to a decimal and dividing $30,600 by 0.17 gives a home price of $180,000.

Step-by-step explanation:

To find the price of the home when the down payment and its percentage are known, we can use the equation down payment = percentage of the price × price of the home. Given that the family paid a down payment of $30,600 which represents 17% of the price of the home, we can set up the equation $30,600 = 17% × price of the home. To find the price of the home, we divide the down payment by the percentage in decimal form.

Step 1: Convert the percentage to a decimal by dividing by 100.
17% = 0.17

Step 2: Divide the down payment by the decimal percentage to find the full price.
Price of the home = $30,600 ÷ 0.17

Step 3: Calculate the result.
Price of the home = $180,000

Hence, the correct answer is (a) $180,000.