Real Estate Math
A property in Buffalo is purchased for $150,000 and the owner makes $30,000 in improvements. If it then sells for $210,000, what is the owner's profit (ignoring closing costs)?
A$30,000✓ Correct
B$60,000
C$80,000
D$210,000
Explanation
Total cost basis = $150,000 + $30,000 = $180,000. Profit = $210,000 - $180,000 = $30,000. Using the values given ($150,000, $30,000), apply the appropriate formula.. The correct answer is $30,000.. This is a common calculation on the New York real estate exam.
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