Krista and nick put a down payment of 20% on the purchase of their house, and then financed $200,000. what was the purchase price of the house? a. $160,000 b. $220,000 c. $240,000 d. $250,000

The correct option is D. $250000

Step-by-step explanation:

Let the purchase price of the house be $x

Given that : Krista and Nick put a down payment of 20% on the purchase of their house, and then financed $200,000

So, The purchase equation for the house can be modeled as :

Purchase Price = Amount Financed + 20% of Purchase Price

⇒ x = 200000 + 20% of x

⇒ x = 200000 + 0.20·x

⇒ x - 0.20 x = 200000

⇒ 0.8 x = 200000

⇒ x = 250000

Hence, The purchase Price of the house = $250000

Therefore, The correct option is D. $250000

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