Real Estate Math
A Colorado investor buys a property for $250,000 and makes $30,000 in improvements. They sell it 2 years later for $320,000. What is the profit?
A$10,000
B$30,000
C$40,000✓ Correct
D$70,000
Explanation
Total cost basis = $250,000 + $30,000 = $280,000. Profit = $320,000 − $280,000 = $40,000. Using the values given ($250,000, $30,000), apply the appropriate formula.. The correct answer is $40,000.. This is a common calculation on the Colorado real estate exam.
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