A lender requires a minimum down payment of 18% of the value of the home. You have $24,000 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.*

To determine the maximum home value you can finance, we need to use the formula for down payment:

\[
\text{Down Payment} = \text{Home Value} \times \text{Down Payment Percentage}
\]

In this case, the down payment percentage is 18%, or 0.18 in decimal form, and you have $24,000 available for the down payment. The formula can be rearranged to solve for the maximum home value:

\[
\text{Home Value} = \frac{\text{Down Payment}}{\text{Down Payment Percentage}} = \frac{24000}{0.18}
\]

Now, calculating the maximum home value:

\[
\text{Home Value} = \frac{24000}{0.18} = 133,333.33
\]

Rounding to the nearest dollar, the maximum home value you can afford is **$133,333**.

Would you like further details or have any questions?

Here are 5 related questions for further exploration:
1. What would the down payment be for a $150,000 home at the same rate?
2. How much more money would you need to afford a $200,000 home?
3. If the down payment requirement increased to 20%, how would this affect the maximum home value?
4. How does the total interest paid over time change with different down payment percentages?
5. How would your maximum home value change if you had $30,000 instead?

**Tip**: Increasing your down payment reduces the amount you need to borrow, which can lower your monthly payments and overall interest paid.

A lender requires a minimum down payment of 18% of the value of the home. You have $24,000 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 $.

Determine the maximum home value you can finance with a $24,000 down payment at an 18% rate. Learn the formula for down payment calculations and how to solve proportional reasoning problems. Suitable for high school students or homebuyers learning basic finance math.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation