Real Estate Math
What is the return on equity for a Wyoming investor who earned $15,000 net profit on an equity investment of $75,000?
A5%
B15%
C20%✓ Correct
D25%
Explanation
Return on equity = Net profit / Equity investment x 100 = $15,000 / $75,000 x 100 = 20%. Return on equity measures how efficiently an investor's equity capital is generating returns.
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