Question

The discount points are 3% which represents $2,700. The buyer down payment is 20%. What is the purchase price of the property? (Please show all steps)

Answer 1

Answer: The purchase price of the property is $112,500.

Step-by-step explanation:

Let the original value of property be 'x'.

Discount rate = 3%

Amount of discount = $2700

According to question, it becomes,

$\dfrac{3}{100}\times x=2700\\\\x=\dfrac{2700\times 100}{3}\\\\x=\ 90000$

Rate of down payment = 20%

So, Remaining rate of payment = 100-20 = 80%

So, Purchase price of the property would be

$\dfrac{80}{100}\times x= 90000\\\\0.8\times x=90000\\\\x=\dfrac{90000}{0.8}\\\\x=\ 112,500$

Hence, the purchase price of the property is $112,500.