Real Estate Math
A property purchased for $180,000 is sold 3 years later for $220,000. What is the percentage gain on the original purchase price?
A18.2%
B22.2%✓ Correct
C25.0%
D40.0%
Explanation
Gain = $220,000 − $180,000 = $40,000. Percentage gain = $40,000 ÷ $180,000 = 22.2%. Using the values given ($180,000, $220,000), apply the appropriate formula.. The correct answer is 22.2%.. This is a common calculation on the Arkansas real estate exam.
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