Question

A building was purchased for $18,000 and sold for $22,500. What percent of the initial cost was gained?

Answer 1

To calculate the percentage gain, subtract the initial cost from the final selling price, then divide the gain by the initial cost and multiply by 100.

Step-by-step explanation:

To calculate the percentage gain, first we need to find the gain in value by subtracting the initial cost from the final selling price:

Gain = Final Selling Price - Initial Cost

Gain = $22,500 - $18,000 = $4,500

Next, we calculate the percentage gain by dividing the gain by the initial cost and multiplying by 100:

Percentage Gain = (Gain/Initial Cost) * 100

Percentage Gain = ($4,500/$18,000) * 100 = 25%

Answer 2

0.8 of the enitial cost