Question

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

$48,000. Their down payment is what percent of the purchase price? What percent of the purchase
price would a $12,000 down payment be?
Their down payment is
% of the purchase price.

Answer 1

Part A

The down payment of $48,000 is 20% of the purchase price

Part B

A $12,000 down payment will be 5% of the purchase price

Explanation:

A percentage is the expression of the product of the ratio of two numbers and 100

The amount the investors buy the studio apartment = $240,000

The amount the investors have as down payment = $48,000

Part A

The ratio of the down payment the investors have and the amount the investors buy the apartment = 45,000/240,00 = 0.2

Therefore, their down payment is 0.2×100 = 20% percentage of their purchase price

Their $48,000 down payment is 20% of their purchase price

Part B

The percentage of the purchase price a $12,000 down payment would be is given as follows;

12,000/240,000 × 100 = 5%

Therefore, a $12,000 down payment will be 5% of the purchase price.