Real Estate Math
A Kansas buyer wants to calculate the maximum purchase price they can afford. They can put 20% down and qualify for a maximum loan of $200,000. What is the maximum purchase price?
A$220,000
B$240,000
C$250,000✓ Correct
D$260,000
Explanation
If $200,000 is 80% of purchase price: Purchase price = $200,000 ÷ 0.80 = $250,000. To solve this, multiply the relevant values: $200,000 at 20%.. The correct answer is $250,000.. This is a common calculation on the Kansas real estate exam.
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