Real Estate Math
An investment property was purchased for $400,000. After 4 years, it sold for $470,000 and the investor paid $32,000 in improvements. What is the net profit?
A$38,000✓ Correct
B$70,000
C$102,000
D$32,000
Explanation
Net profit = Sale price − Purchase price − Improvements = $470,000 − $400,000 − $32,000 = $38,000. Using the values given ($400,000, $470,000), apply the appropriate formula.. The correct answer is $38,000.. This is a common calculation on the Montana real estate exam.
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