Question

Investors buy a studio apartment for $240,000. Of this amount, they have a down payment of $60,000.

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

Answer 1

The first down payment of $60,000 represents 25% of the purchase price, and the second down payment of $12,000 represents 5% of the purchase price for the apartment.

Step-by-step explanation:

To calculate the down payment as a percent of the purchase price, you can use the formula:

Percent = (Down Payment / Purchase Price) × 100%

a. For a $60,000 down payment on a $240,000 studio apartment:

Percent = ($60,000 / $240,000) × 100% = 25%

So, the down payment is 25 percent of the purchase price.

b. For a $12,000 down payment on a $240,000 studio apartment:

Percent = ($12,000 / $240,000) × 100% = 5%

Thus, the down payment would be 5 percent of the purchase price.

Answer 2

A) 4%

B) 20%

Step-by-step explanation:

As, A) we will take 60,000/240000 x 100% so that we can find the percentage.

So the answer = 4%

B) for $12,000, 12, 000/240000 x 100%

Answer = 20%