Real Estate Math
A property is purchased for $180,000 and sold 3 years later for $225,000. What is the percentage gain?
A20%
B25%✓ Correct
C30%
D22.5%
Explanation
Percentage gain = (Sale Price - Purchase Price) / Purchase Price = ($225,000 - $180,000) / $180,000 = $45,000 / $180,000 = 0.25 = 25%. This calculation measures the return on the original investment based on the purchase price.
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