Question

A lender requires a minimum down payment of 16% of the value of the home. You have $30,000 cash available to use as a down payment toward a home. Determine the maximum home value that you can finance. You can afford to finance a home worth at most $.________Round your answer to the nearest dollar.

Answer 1

Let

x ----> the value of the home

Remember that

16%=16/100=0.16

so

the inequality that represents this situation is equal to

$0.16x\leq30,000$

Solve for x

$\begin{gathered} x\leq\frac{30,000}{0.16} \\ x\leq\ 187,500 \end{gathered}$

The answer is $187,500