The Davis family purchased a house last year. They put $20,000 towards a down payment and took out a $265.000
mortgage. Because it was a new home, all the repairs and maintenance were covered under the builder's warranty, but the
Davises want to budget this coming year for unexpected expenses. When estimating costs for home repair and
maintenance, a good estimate is to budget 1% of the purchase price of a house. What would be a good yearly estimate of
repairs and maintenance for the Davis family's home?