Real Estate Math
An investor purchases a rental property for $180,000 and spends $20,000 on improvements. After 5 years, it sells for $250,000. What is the profit (not accounting for depreciation or taxes)?
A$50,000✓ Correct
B$70,000
C$80,000
D$30,000
Explanation
Total cost basis = $180,000 + $20,000 = $200,000. Profit = $250,000 − $200,000 = $50,000.
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