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 = 
<gadget id="calculator">100-75</gadget>
<output>25</output>
25.
He paid $125,000 towards the new home because 500,000 x .25 = 
<gadget id="calculator">500000*.25</gadget>
<output>125_000</output>
125,000.
Therefore he paid $100,000 for his first home because 125,000 / 1.25 = 
<gadget id="calculator">125000/1.25</gadget>
<output>100_000</output>
100,000.

<result>100_000</result>