Real Estate Math
An investor buys a property for $500,000, makes $50,000 in improvements, and sells for $630,000 paying 5% commission. What is the net profit?
A$48,500✓ Correct
B$130,000
C$80,000
D$41,225
Explanation
Commission = 5% × $630,000 = $31,500. Total cost = $500,000 + $50,000 + $31,500 = $581,500. Net profit = $630,000 − $581,500 = $48,500.
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