Real Estate Math
A Tennessee home seller paid $245,000 for a property 5 years ago and is selling it today for $312,000. What is the percentage gain over the 5-year period?
A25%
B27.35%✓ Correct
C31.2%
D22.5%
Explanation
Gain = $312,000 − $245,000 = $67,000. Percentage gain = $67,000 ÷ $245,000 = 27.35%. Using the values given ($245,000, $312,000), apply the appropriate formula.. The correct answer is 27.35%.. This is a common calculation on the Tennessee real estate exam.
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