How do you find the percentage of a down payment?

Answer 1

Literal Answer: Ask the loaner what percent of the loan amount is required. The loaner decided what percentage you must pay as a down payment.

If your question is asking "How do I compute the amount I must pay as a down payment on a loan?", then do the following:

Sample problem:

You ask a banker to loan you 5,000$ for a car. The banker agrees to give you a loan if you can pay a 20% down payment to the bank. To compute how much $ you will need to pay as a down payment, do the following:

1. Convert 20% into decimal form: 20 / 100 = .2

2. Multiple the loan amount by 20%: 5000$ * .2 = 1000$

You will need to pay a down payment of 1,000$ to the bank and sign some documents before the banker will issue you a loan. The bank will then pay 5000$ to the car seller on your behalf or give you a check that is payable to the car seller so that you can exchange the check for the car & keys to the car. You will owe the bank 4,000$ & most likely be required to make monthly payments to the bank until your debt is paid.