Real Estate Math

A Connecticut property owner bought a building for $300,000 and made $45,000 in improvements. After 5 years, they sold it for $415,000. What was the total return on investment?

A20%
B22.5%
C27.5%
D38.3%✓ Correct

Explanation

Total investment = $300,000 + $45,000 = $345,000. Profit = $415,000 − $345,000 = $70,000.

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