Real Estate Math

A Florida investor purchased a property for $400,000 and sold it 3 years later for $480,000. What was the percentage gain?

A16.67%
B18.00%
C20.00%✓ Correct
D25.00%

Explanation

Gain = $480,000 - $400,000 = $80,000. Percentage gain = $80,000 ÷ $400,000 = 0.20 = 20%. Using the values given ($400,000, $480,000), apply the appropriate formula.. The correct answer is 20.00%.. This is a common calculation on the Florida real estate exam.

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