Real Estate Math
A Kentucky investor buys a property for $225,000 and spends $35,000 on renovations. They sell it for $310,000 and pay 6% commission. What is the gross profit (before taxes)?
A$31,400✓ Correct
B$50,000
C$31,600
D$50,400
Explanation
Total cost: $225,000 + $35,000 = $260,000. Commission: $310,000 x 6% = $18,600. Net sale proceeds: $310,000 minus $18,600 = $291,400. Gross profit: $291,400 minus $260,000 = $31,400.
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