Sparx Naths Kaths 22,608 XP Phoeb 5A 5B 5 C 5D 5E Summary Bookwork code: 5B Calculator not allowed Callum has saved \( £ 8400 \) as a deposit for a new house. If the deposit is \( 5 \% \) of the house's value, what is the value of the house? Give your answer in pounds (£). Watch video

To find the house's value, you can set up the equation based on the given information. If \( £ 8400 \) is \( 5 \% \) of the house value, you can express it as: \[ \text{House Value} = \frac{£ 8400}{0.05} \] Calculating this gives you a house value of \( £ 168,000 \). Now, here’s a fun fact: house deposits have been a significant factor in real estate for centuries. A smaller deposit often means higher monthly payments and depending on the market, securing a home can look very different today than it did 50 years ago. It's fascinating to see how home ownership has evolved! Additionally, when considering buying a house, it's important to also budget for other costs like taxes and maintenance. A common mistake is only focusing on the deposit and neglecting these hidden expenses, which can lead to unexpected financial strain in the long run!