Real Estate Math
A NC investor pays $50,000 for a vacant lot and builds a house for $200,000. After selling for $295,000, the gross profit is:
A$45,000✓ Correct
B$50,000
C$95,000
D$295,000
Explanation
Total cost = $50,000 + $200,000 = $250,000. Gross profit = $295,000 - $250,000 = $45,000. Using the values given ($50,000, $200,000), apply the appropriate formula.. The correct answer is $45,000.. This is a common calculation on the North Carolina real estate exam.
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