A couple is required by their lender to have a down payment of 20% of the purchase price of the home they want to buy. If the couple has saved $35,000, what is the most expensive home the couple can afford to buy?

The $35,000 saved is 20% of the home’s purchase price. Divide $35,000 by 0.20 to find the full price: $35,000 ÷ 0.20 = $175,000. The most expensive home is $175,000, choice c.

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