Question

Krista and Nick put a down payment of 20% on the purchase of their house, and then financed $200,000. What was the purchase price of the house?

$160,000
$220,000
$240,000
$250,000

Answer 1

Let P be the purchase price. They financed 80% of P, so 0.8P = $200,000.
P = 200,000 / 0.8 = $250,000.

Answer: $250,000.