Mr. and Mrs. Lorenzo want to buy a home valued at $213,500. If they have 18% of this amount saved for a down payment, how much have they saved?


A$384.30
B$3,843.00
C$38,043.00
D$38,430.00

Verified Answer :

  • Convert the percentage \(18\%\) to a decimal: \(0.18\).
  • Multiply the home value \(\$213,500\) by the decimal \(0.18\).
  • Calculate the product: \(\$213,500 \times 0.18 = \$38,430.00\).
  • Identify the correct choice as \(D\).
  • \(\boxed{D}\)

Explanation

  1. Understanding the Problem

To find the amount Mr. and Mrs. Lorenzo have saved for a down payment, we need to calculate \(18\%\) of the total home value of \(\$213,500\). The percentage formula is defined as \(\text{Part} = \text{Whole} \times \text{Rate}\), where the whole is the home value, and the rate is the percentage saved expressed as a decimal.

  1. Performing the Calculation

To convert the percentage to a decimal, divide by \(100\). Thus, \(18\% = \frac{18}{100} = 0.18\). Now, we multiply the home value by this decimal: \(\$213,500 \times 0.18\). This can be calculated as: \(\$213,500 \times 0.18 = \$2135 \times 18\). Multiplying \(2135\) by \(18\) gives \(2135 \times 10 = 21,350\) and \(2135 \times 8 = 17,080\). Adding these together: \(21,350 + 17,080 = 38,430\). Therefore, the amount saved is \(\$38,430.00\).

  1. Conclusion and Selection

Comparing our result of \(\$38,430.00\) with the given options:

A\(\$384.30\)
B\(\$3,843.00\)
C\(\$38,043.00\)
D\(\$38,430.00\)

The correct option is d.

Examples

Percentages are used everywhere in daily life, such as when calculating sales tax on a purchase, determining the amount of a tip at a restaurant, or figuring out how much interest you will earn on a savings account. Understanding how to convert a percentage to a decimal and perform the multiplication helps in managing personal finances effectively and making informed consumer decisions.