Question

Investors buy a studio apartment for $200,000. Of this amount, they have a down payment of $20,000. Their down payment is what percent of the purchase price? What percent of the purchase price would an $80,000 down payment be?

Their down payment is 10% of the purchase price.
An $80,000 down payment would be 40% of the purchase price.

Answer 1

The down payment is 10% of the purchase price. An $80,000 down payment would be 40% of the purchase price.

Step-by-step explanation:

The down payment is what percent of the purchase price?

To find the percent, we divide the down payment by the purchase price and multiply by 100.

For the first scenario, where the down payment is $20,000 and the purchase price is $200,000, we have:

$20,000 / $200,000 * 100 = 10%

Therefore, the $20,000 down payment is 10% of the purchase price.

For the second scenario, where the down payment is $80,000 and the purchase price is unknown, we can set up a proportion:

$20,000 / $200,000 = $80,000 / x

Cross multiplying, we get:

$20,000 * x = $80,000 * $200,000

Dividing both sides by $20,000, we find:

x = $80,000 * $200,000 / $20,000 = $800,000

So, the purchase price in this scenario is $800,000. To find the percent, we divide the down payment by the purchase price and multiply by 100:

$80,000 / $800,000 * 100 = 10%

Therefore, an $80,000 down payment would be 40% of the purchase price.