Real Estate Math
An Indiana investor buys a property for $420,000 and receives a net profit of $63,000 when they sell. What is the rate of return?
A10%
B12%
C15%✓ Correct
D18%
Explanation
Rate of return = Net Profit ÷ Cost = $63,000 ÷ $420,000 = 0.15 = 15%. Using the values given ($420,000, $63,000), apply the appropriate formula.. The correct answer is 15%.. This is a common calculation on the Indiana real estate exam.
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