Answer:
Therefore, the maximum price of the house we can offer is $181,818.18, rounded to two decimal places.
Explanation:
et's say the maximum price of the house we can afford is "P". We know that the bank requires a minimum down payment of 11%, which means we have to pay 11% of the price of the house as a down payment to obtain a mortgage.
So, we can write the equation:
0.11P = $20,000
Solving for P, we get:
P = $20,000 / 0.11
P = $181,818.18