Real Estate Math
An investor buys a Pennsylvania property for $400,000 and sells it 3 years later for $460,000. What is the percentage profit on the original investment?
A13%
B15%✓ Correct
C17%
D12%
Explanation
Profit = $460,000 − $400,000 = $60,000. Percentage profit = $60,000 ÷ $400,000 = 15%. This calculation measures the total return on the original investment over the 3-year holding period, not an annualized return.
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