Real Estate Math

A Maine property owner paid $275,000 for a home and sold it 5 years later for $330,000. What was the total percentage gain?

A16.7%
B20%✓ Correct
C25%
D18%

Explanation

Gain = ($330,000 - $275,000) / $275,000 = $55,000 / $275,000 = 0.20 = 20%. Using the values given ($275,000, $330,000), apply the appropriate formula.. The correct answer is 20%.. This is a common calculation on the Maine real estate exam.

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