A developer, Purcell, purchased two lots of equal size for $180,000 each. She divided them into three lots of equal size that she sold for $150,000 each. Assuming no other expenses, what was her percentage of profit?
A. 15%
B. 20%
C. 25%
D. 30%
Answer: C. 25%
Explanation: If you add the parcels together, you determine that her total purchase price was $360,000 ($180,000 × 2 = $360,000) and her total resale price was $450,000 ($150,000 × 3 = $450,000). Calculate the difference between the two prices ($450,000 - $360,000 = $90,000). Divide the difference by the price paid in order to calculate the percentage of profit ($90,000 ÷ $360,000 = .25).
Business
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