Real Estate Math
A Texas property was purchased for $420,000. After 3 years, it is sold for $480,000. The seller pays a 5% commission and $4,500 in other closing costs. What is the net profit?
A$31,500✓ Correct
B$36,000
C$55,500
D$60,000
Explanation
Commission = $480,000 × 5% = $24,000. Total selling costs = $24,000 + $4,500 = $28,500. Net proceeds = $480,000 – $28,500 = $451,500. Net profit = $451,500 – $420,000 = $31,500.
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