Real Estate Math
A Rhode Island investor buys a vacant lot for $85,000 and sells it 3 years later for $115,000. What is the total return on investment?
A30.3%
B33.3%
C35.3%✓ Correct
D40.0%
Explanation
ROI = (Sale Price - Purchase Price) / Purchase Price = ($115,000 - $85,000) / $85,000 = $30,000 / $85,000 = 0.353 = 35.
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