Real Estate Math
An Iowa home purchased for $175,000 is sold 6 years later for $220,000. What is the total percentage gain?
A20.5%
B22.7%
C25.7%✓ Correct
D28.9%
Explanation
Gain = ($220,000 − $175,000) ÷ $175,000 = $45,000 ÷ $175,000 = 0.2571 ≈ 25.7%. Using the values given ($175,000, $220,000), apply the appropriate formula.. The correct answer is 25.7%.. This is a common calculation on the Iowa real estate exam.
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