Question

Investors buy a studio apartment for $120,000. This amount they have a down payment of $12,000. Their down payment is what percent of the purchase price?

A) 10%
B) 12%
C) 20%
D) 25%

Answer 1

The down payment of $12,000 is 10% of the purchase price ($120,000) of the studio apartment.

Step-by-step explanation:

The question relates to finding out what percentage the down payment is of the purchase price of a studio apartment. If investors buy a studio apartment for $120,000 and make a down payment of $12,000, to determine the percentage we divide the down payment by the purchase price and then multiply by 100 to get the percentage.

$12,000 ÷ $120,000 = 0.1

0.1 × 100 = 10%

So, the down payment of $12,000 is 10% of the purchase price of the apartment. Hence, the correct answer to the question is A) 10%.