Question

Investors buy a studio apartment for $200,000. Of this amount, they have a down payment of $60,000. Their down payment is what percent of the purchase price? What percent of the purchase price would a $70,000 down payment be?

Answer 1

a) 30%

b) 35%

Explanation:

To convert a ratio to a percentage, multiply it by 100%.

a) $60,000 down payment

60,000/200,000 × 100% = 30%

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b) $70,000 down payment

70,000/200,000 × 100% = 35%

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The word "percent" literally means "per hundred." The symbol "%" is shorthand for "/100" (per hundred).

You can reduce these fractions to ones that have 100 as a denominator, so can see the percentage value easily:

60,000/200,000 = 60/200 = 30/100 = 30% . . . . . . replace /100 with %.

70,000/200,000 = 70/200 = 35/100 = 35%