The Ls sold their vacation home for $88,000 with a profit of 10%. What was the original cost of the property?

To determine the original cost of the property, we need to understand the relationship between the selling price, profit, and original cost. The selling price of the vacation home is $88,000, and it was sold for a profit of 10%.

When a property is sold for a profit, the selling price can be expressed in terms of the original cost and the profit percentage. The formula to find the selling price based on the original cost and profit percentage is:

Selling Price = Original Cost + (Original Cost x Profit Percentage)

In this situation, we can rearrange the formula to isolate the original cost. With a 10% profit, we can also express it as:

Selling Price = Original Cost x (1 + Profit Percentage)

Here, the profit percentage of 10% can be converted into a decimal for calculations, which is 0.10. Thus, the formula becomes:

Selling Price = Original Cost x (1 + 0.10)

Selling Price = Original Cost x 1.10

By substituting the selling price of $88,000 into the equation, we get:

$88,000 = Original Cost x 1.10

To find the original cost, we can now solve for it