Question

Investors buy a studio apartment for $240,000. Of this amount, they have a down payment of

$36,000. Their down payment is what percent of the purchase price? What percent of the purchase
price would a $12,000 down payment be?

Answer 1

• The down payment of $36000 is 15% of price.
• The down payment of $12000 is 5% of price.

Explanation:

Given that

Price of studio apartment = P = $240000

Down payment =d = $36000

Down payment is the amount that is initially given at the time of buying something.

Part A: For down payment of $36000

We will simply divide the down payment by total price.

`= (36000)/(240000)\\=0.15`

Converting into percentage, multiplying by 100

`= 0.15*100 = 15\%`

Part B: For down payment of $12000

We will simply divide the down payment by total price.

`=(12000)/(240000)\\=0.05`

Converting into percentage, multiplying by 100

`=0.05*100 = 5\%`

Hence,

• The down payment of $36000 is 15% of price.
• The down payment of $12000 is 5% of price.