Question

real estate math Speculator paid $25,000 net each for two 150 front-foot lots. Speculator split them into 3 lots with equal front footage. Speculator sold the 3 lots for $300 per front foot. What was Speculator percentage of profit?

Answer 1

80%

Explanation:

The original cost per front-foot was ...

$25000/150 = $500/3

The percentage profit relative to the initial investment is ...

profit percent = ((new value)/(old value) -1) × 100%

profit percent = (300/(500/3) -1)×100% = (9/5 -1)×100% = 80%

Speculator made 80% profit on the investment.