Real Estate Math
An Indiana seller owes $180,000 on their mortgage, has $15,000 in closing costs, and sells for $310,000. What is the percentage gain on the original purchase price if they bought for $220,000?
A28.7%
B36.4%
C40.9%✓ Correct
D43.2%
Explanation
Gain on original investment = ($310,000 − $220,000) ÷ $220,000 = $90,000 ÷ $220,000 = 40.9%. Using the values given ($180,000, $15,000), apply the appropriate formula.. The correct answer is 40.9%.. This is a common calculation on the Indiana real estate exam.
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