If Lindsey wants to save 10\% of the home value as a down payment for a house priced at \$250,000, how much money does she need to save?

• A. \$25,000
• B. \$10,000
• C. \$2,500
• D. \$20,000

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the problem. Lindsey wants to save 10% of the home's value as a down payment. The home's price is \$250,000, and we need to calculate 10% of this amount.
2. Step 2: Recall the formula for calculating a percentage: \( \text{Percentage Amount} = \text{Total Value} \times \frac{\text{Percentage}}{100} \).
3. Step 3: Substitute the given values into the formula. Here, \( \text{Total Value} = 250,000 \) and \( \text{Percentage} = 10 \). The formula becomes \( \text{Percentage Amount} = 250,000 \times \frac{10}{100} \).
4. Step 4: Simplify the fraction \( \frac{10}{100} \) to \( 0.1 \), and rewrite the formula as \( \text{Percentage Amount} = 250,000 \times 0.1 \).
5. Step 5: Multiply \( 250,000 \) by \( 0.1 \) to find the amount Lindsey needs to save. This will give the final result.