L is the loan amount. We know that Jenine has saved a 15% downpayment, meaning she will pay 15% of house price at the time of borrowing.
After 15% is subtracted from the house price, the remaining amount is 85%, meaning Jenine will now only need to borrow 85% of the house price to purchase the house.
85% of the house price is
[tex]\frac{85}{100}\times110,000[/tex][tex]=93,500.[/tex]Hence, the loan amount is L = $93, 000.
Jenine paid 15% of the house price, right?
Now she has only 100% - 15% = 85% of the price left to pay.
Do you agree?
