Real Estate Math

A Maryland investor sells a property for $575,000 after owning it for 5 years and receiving a total of $150,000 in rental income. The original purchase price was $400,000. Total gross profit is:

A$150,000
B$175,000
C$325,000✓ Correct
D$575,000

Explanation

Total profit = Capital gain + Rental income = ($575,000 – $400,000) + $150,000 = $175,000 + $150,000 = $325,000.

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