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An investor purchased two lots and paid $18,000 for each one. Since each lot had a 60' frontage he was able to subdivide the combined parcels in 3 lots with equal front footage. If the 3 lots sold for $15,000 each, his rate of profit on his investment was:
A. 20%
B. 25%
C. 33%
D. 40%
3 lots X $15,000 each = $45,000 selling price.
$45,000 less cost of $36,000.
(2 X $18,000) = $9000 profit.
$9000 divided by $36,000 = 25%.
 
 
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Educating realtors for 20 years
 
 
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This exam covers real estate math for Brokers.
Taken: 529 times
Added: 8/18/2008
Liked: 1 time
Audience: Professional
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Real Estate License
Real Estate License
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This is a study group dedicated to those wishing to become real estate Sales Agents or brokers.
 
 
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