Karina bought a townhouse for $199,900. She has a 30 year mortgage with a fixed rate of 5.5%. Karina’s monthly payments are $998.08. What percent of the purchase price was Karina’s down payment?

Use the mortgage payment formula to find the amount borrowed: at 5.5% annual interest over 30 years, a monthly payment of $998.08 corresponds to a loan of about $175,800. Subtract this from the $199,900 purchase price to get a down payment of about $24,100. Since $24,100 ÷ $199,900 is about 0.12, the down payment was 12% of the purchase price.

AI-written and checked against the verified answer.