Real Estate Math
A NJ investor buys a property for $600,000 with 25% down and sells it 3 years later for $750,000 (ignoring taxes and costs). What is the return on equity (simple ROI on cash invested)?
A25%
B66.7%✓ Correct
C100%
D33.3%
Explanation
Cash invested (down payment) = $600,000 × 0.25 = $150,000.
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