Real Estate Math
An Arizona home sold for $425,000. The seller purchased the home 5 years ago for $320,000. After paying a 5% commission ($21,250) and $8,500 in other selling costs, what was the seller's net profit before taxes?
A$65,250
B$75,250✓ Correct
C$85,000
D$104,750
Explanation
Net Proceeds = Sale Price − Commission − Other Costs = $425,000 − $21,250 − $8,500 = $395,250. Net Profit = Net Proceeds − Original Purchase Price = $395,250 − $320,000 = $75,250.
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