If M listed her property for sale at $100,000 and her cost was 80 percent of that price, what percentage profit will she realize if it is sold at the listing price?

Study for the Indiana RECP Comprehensive Test. Utilize flashcards and multiple-choice questions, each with hints and explanations. Prepare to ace your exam!

To determine the percentage profit that M will realize if her property is sold at the listing price of $100,000, we first need to calculate her cost basis for the property. If her cost was 80 percent of the listing price, we find her cost by taking 80 percent of $100,000, which is $80,000.

Next, we calculate the profit by subtracting her cost from the selling price. The selling price is the listing price of $100,000, and the cost is $80,000, so the profit is:

Profit = Selling Price - Cost = $100,000 - $80,000 = $20,000.

Now, to find the percentage profit, we use the formula:

Percentage Profit = (Profit / Cost) x 100.

Substituting in the values we have:

Percentage Profit = ($20,000 / $80,000) x 100.

This simplifies to:

Percentage Profit = 0.25 x 100 = 25%.

Therefore, if the property is sold at the listing price of $100,000, M will realize a 25% profit on her original cost of the property. This calculation shows how to derive the percentage profit based on cost and

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