Question

Ruby obtained a loan of $90,000 towards the purchase of her new home. If the loan was 75% of the purchase price, how much did she pay for the home?* $120,000 (Dollars)* $125,000 (Dollars)* $145,000 (Dollars)* $115,000 (Dollars)

Answer 1

Solution:

Loan amount = $90,000

Given that this loan is 75% of purchase price of the new home.

We are required to to determine the amount paid for the home.

Let the amount paid for the home be x

$\begin{gathered} From\text{ the information given, } \\ 75\text{ \% of x = 90,000} \\ \frac{75}{100}x=90,000 \\ 0.75x=90,000 \\ x=\frac{90000}{0.75} \\ x=120,000 \end{gathered}$

The amount she paid for the home is $120,000 (Dollars)