Real Estate Math

An Alaska home sold at a 4% loss for $312,000. What was the original purchase price?

A$299,520
B$324,480
C$325,000✓ Correct
D$312,000

Explanation

If the home sold at a 4% loss, the sale price = 96% of purchase price. Purchase price = $312,000 ÷ 0.96 = $325,000.

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