Real Estate Math
A property in Illinois was purchased for $250,000 and sold 3 years later for $295,000. What was the percentage gain on the investment?
A15%
B16%
C18%✓ Correct
D20%
Explanation
Percentage gain = (Selling Price - Purchase Price) ÷ Purchase Price × 100 = ($295,000 - $250,000) ÷ $250,000 × 100 = $45,000 ÷ $250,000 × 100 = 18%. This calculation shows the total return on the investment over the 3-year holding period without accounting for other costs.
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