Question

A family buys a studio apartment for $240,000. They pay a down payment of $36,000.

a. Their down payment is what percent of the purchase price?
b. What percent of the purchase price would a $96,000 down payment be?

Answer 1

The family's down payment is 15% of the purchase price. A $96,000 down payment would be 40% of the purchase price.

Step-by-step explanation:

To determine the down payment as a percentage of the purchase price, we use the formula: (down payment ÷ purchase price) × 100%. For the family that buys a studio apartment for $240,000 with a $36,000 down payment, the calculation would be:

($36,000 ÷ $240,000) × 100% = 15%

Therefore, the family's down payment is 15 percent of the purchase price.

For a down payment of $96,000 on the same purchase price of $240,000, the percentage would be calculated in the same way:

($96,000 ÷ $240,000) × 100% = 40%

So a $96,000 down payment would be 40 percent of the purchase price.