Question

A couple is required by their lender to have a down payment of 20% of the purchase price of the home they want to buy. If the couple has saved $35,000, what is the most expensive home the couple can afford to buy?
a.
$63,000
b.
$140,000
c.
$175,000
d.
$210,000


Please select the best answer from the choices provided

A
B
C
D

Answer 1

C

35,000 is 20% of the price, so price = 35,000 ÷ 0.20 = 175,000.