Question

Investors buy a studio apartment for $150,000. Of this amount, they have a down payment of $37,500. Their down payment is what percent of the purchase price? What percent of the purchase price would a $7,500 down payment be?

A) 25%, 5%

B) 20%, 15%

C) 30%, 2.5%

D) 10%, 15%

Answer 1

A down payment of $37,500 is 25% of the $150,000 purchase price, while a $7,500 down payment represents 5% of the purchase price.

Step-by-step explanation:

To determine the percent of the purchase price that the down payments represent, we use the formula for calculating the percentage, which is (Part / Whole) x 100. In this case, the purchase price of the studio apartment is the whole, and the down payments are parts of this whole.

For a $37,500 down payment:

Down Payment Percent of Purchase Price = ($37,500 / $150,000) x 100

= (0.25) x 100

= 25%

For a $7,500 down payment:

Down Payment Percent of Purchase Price = ($7,500 / $150,000) x 100

= (0.05) x 100

= 5%

Therefore, the down payment of $37,500 is 25% of the purchase price, and the down payment of $7,500 is 5% of the purchase price.