Real Estate Math
An investor buys a property for $500,000, puts $50,000 into improvements, then sells it for $620,000. The broker takes a 5% commission. What is the investor's net profit before taxes?
A$39,000✓ Correct
B$88,000
C$33,150
D$70,000
Explanation
Sale price = $620,000. Commission = $620,000 × 5% = $31,000.
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