Real Estate Math
A Nevada investor pays $550,000 for a property. After 5 years, they sell for $720,000. What is the return on investment (ROI)?
A27.3%
B30.9%✓ Correct
C33.3%
D31.0%
Explanation
Gain = $720,000 – $550,000 = $170,000. ROI = $170,000 / $550,000 = 0.309 = 30.9%. Using the values given ($550,000, $720,000), apply the appropriate formula.. The correct answer is 30.9%.. This is a common calculation on the Nevada real estate exam.
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