Real Estate Math

A North Dakota investor buys land for $120,000 and sells it 4 years later for $168,000. What is the total percentage gain?

A28%
B35%
C40%✓ Correct
D45%

Explanation

Gain = $168,000 − $120,000 = $48,000. Percentage gain = $48,000 / $120,000 = 0.40 = 40%. Using the values given ($120,000, $168,000), apply the appropriate formula.. The correct answer is 40%.. This is a common calculation on the North Dakota real estate exam.

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