Real Estate Math
An investor pays $175,000 for a property, makes $25,000 in improvements, and sells it 18 months later for $240,000. The investor paid a 5% commission. What is the net profit before taxes?
A$28,000✓ Correct
B$27,000
C$29,000
D$40,000
Explanation
Total cost = $175,000 + $25,000 = $200,000. Commission = $240,000 × 5% = $12,000.
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