Real Estate Math
A NC investor buys a property for $400,000 and sells it 3 years later for $460,000. The simple return on investment (ignoring expenses) is:
A10%
B15%✓ Correct
C12%
D18%
Explanation
Simple ROI = (Gain / Cost) = ($460,000 - $400,000) / $400,000 = $60,000 / $400,000 = 0.15 = 15% total return over the 3-year period.
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