Real Estate Math
A Mississippi investor paid $250,000 for a property and sold it three years later for $287,500. The total return over three years (not annualized) is:
A12%
B15%✓ Correct
C10%
D8%
Explanation
Profit = $287,500 − $250,000 = $37,500. Return = $37,500 ÷ $250,000 = 15%. Using the values given ($250,000, $287,500), apply the appropriate formula.. The correct answer is 15%.. This is a common calculation on the Mississippi real estate exam.
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