Real Estate Math
An investor purchases a property for $480,000 and sells it 3 years later for $540,000. What is the percentage gain?
A10.5%
B11.75%
C12.5%✓ Correct
D14.0%
Explanation
Gain = ($540,000 − $480,000) ÷ $480,000 = $60,000 ÷ $480,000 = 0.125 = 12.5%. Using the values given ($480,000, $540,000), apply the appropriate formula.. The correct answer is 12.5%.. This is a common calculation on the New Jersey real estate exam.
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