Real Estate Math
A homeowner paid $525,000 for their property 5 years ago. They sell it for $630,000. What is the rate of return on their original investment (not accounting for other costs)?
A16%
B18%
C20%✓ Correct
D22%
Explanation
Gain = $630,000 - $525,000 = $105,000. Rate of return = $105,000 / $525,000 = 0.
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