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.
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