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

Multiple Choice

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?

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

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