Question

Your client has saved $2500 for a down payment on a house. A government loan program requires a down payment equal to 2.5% of the loan amount. What is the largest loan amount that your client could receive with this program?

Answer 1

The largest amount that could be received is $100,000

Explanation:

Here in this question , we are interested in calculating the largest amount loan amount that could be received.

Now, let the loan amount be $x

What we know is that the amount of down payment paid is 2.5% of the loan amount.

Thus, mathematically;

2.5% of x = 2500

2.5/100 * x = 2500

2.5x/100 = 2500

2.5x = 100 * 2500

x = (2500 * 100)/2.5

x = 100,000

The largest loan amount that could be received with the program is $100,000