Real Estate Math
An investment property was purchased for $200,000 five years ago and is now sold for $265,000. What is the percentage gain on the original purchase price?
A25.0%
B30.0%
C32.5%✓ Correct
D33.0%
Explanation
Gain: $265,000 − $200,000 = $65,000. Percentage gain: $65,000 ÷ $200,000 = 0.325 = 32.5%. Using the values given ($200,000, $265,000), apply the appropriate formula.. The correct answer is 32.5%.. This is a common calculation on the Pennsylvania real estate exam.
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