A builder reduced the price of a house by %20. If the new price is $440,000, what was the original price?

Question

I really need help with this question, I don't know how to set up the problem in order to solve it.

Answer 1

Hi Amber--

 

One way to think of this is to consider NOT the 20% saved, but the 80% that they paid.

 

That way, you get 80/100 = 440000/x, and you can solve the proportion from there. (Be careful--lots of zeros to keep track of!)

 

Anyway, you get 80x = 44,000,000

 

Then 44,000,000÷ 80 = ...

 

$ 550,000 for the original price.

 

Hope this helps!

 

Matt in NY

Answer 2

Let P be the original price of the house. If the builder reduces the cost of the house by 20% and this amount is equal to $440,000, then this means that 80% of the original price of the house equals $440,000, or

 

0.80P = 440,000

 

Divide both sides by 0.80 and you get

 

P = $550,000, the original price of the house