Tommy's home is worth 25% more than he bought it for. He sells it and buys a new house that costs $500,000. If he had to take a loan for the 75% he can't pay, how much did he buy his first house for?
He paid 25% of the new home price because 100 - 75 = <T>subtract(100, 75)=25
He paid $125,000 towards the new home because 500,000 x .25 = <T>multiply(500000, 0.25)=125000.0
Therefore he paid $100,000 for his first home because 125,000 / 1.25 = <T>divide(125000, 1.25)=100000.0
