Real Estate Math
A Vermont investor buys a property for $425,000. Their total equity after 10 years is $175,000. What is their equity as a percentage of the original purchase price?
A35%
B38%
C41%✓ Correct
D44%
Explanation
Equity as % of purchase price = $175,000 ÷ $425,000 = 0.4118 ≈ 41%. This measure shows how much of the original investment has been recovered through equity accumulation (down payment, principal paydown, and appreciation).
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