Real Estate Math
An investor buys a property for $750,000 and sells it 2 years later for $832,500. What is the total return on investment?
A8.7%
B10.0%
C11.0%✓ Correct
D12.5%
Explanation
Gain = $832,500 − $750,000 = $82,500. ROI = $82,500 ÷ $750,000 = 0.11 = 11.0%. Using the values given ($750,000, $832,500), apply the appropriate formula.. The correct answer is 11.0%.. This is a common calculation on the Connecticut real estate exam.
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