SOLUTION: If I have a maximum loan amount of 417,000 and a required down payment of 5%, how do I calculate the purchase price?

Question 956181: If I have a maximum loan amount of 417,000 and a required down payment of 5%, how do I calculate the purchase price?
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
your loan is 417,000.
your required down payment is 5%.
let x = the purchase price.
you are paying 5% down and 95% is the loan.
since you know the amount of the loan, then:
.95 * x = 417,000
divide both sides of this equation by .95 and you get:
x = 417,000 / .95 = 438947.3684.
that's the amount of the loan.
5% of that is the down payment and 95% of that is the loan.
it looks wierd, but that's the way it comes out.
the amount of the loan is 438947.36842.
5% of that is equal to 21947.36842
subtract that from 438947.3684 and you get 417000.
that's the amount of the loan.
the alternative is to just multiply 438947.36842 by .95 and you will still get 417000.

RELATED QUESTIONS
Calculate the amount financed, the finance charge, and the monthly payments (in $) for... (answered by Theo)

You are the owner of four Taco Bell restaurant locations. You have a business loan with... (answered by CPhill)

John has just purchased an apartment at a price of $5,000,000. He made a down-payment of (answered by Theo)

Question 3 (15 marks) John has just purchased an apartment at a price of $5,000,000. He... (answered by mananth,ikleyn,math_tutor2020)

You have a good credit score, $100,000 for a down payment, and $2,500 per month available (answered by Theo)

You take out a loan of $15,000 to purchase a car. If your loan is for 3 years at a... (answered by Boreal,MathTherapy)

Rajesh would like to buy his first car and the one he has his eye on is $25,000, plus an... (answered by math_tutor2020)

I AM SO LOST!!! Presvent value... future value... I am confused. Here is the problem:... (answered by jim_thompson5910)

Michael Sanchez purchased a condominium for $73,000. He made a 20% down payment and... (answered by Theo)