Real Estate Math
An Iowa buyer paid $285,000 for a home and sells it 5 years later for $340,000. Ignoring capital gains exclusion, what is the profit?
A$45,000
B$55,000✓ Correct
C$65,000
D$75,000
Explanation
Profit = $340,000 − $285,000 = $55,000. Using the values given ($285,000, $340,000), apply the appropriate formula.. The correct answer is $55,000.. This is a common calculation on the Iowa real estate exam.
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