Real Estate Math
An investor purchases a property for $180,000 and sells it 2 years later for $207,000. What is the return on investment (ROI) as a percentage?
A12%
B15%✓ Correct
C18%
D20%
Explanation
ROI = (Gain ÷ Cost) × 100 = ($207,000 − $180,000) ÷ $180,000 × 100 = $27,000 ÷ $180,000 × 100 = 15%.
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