Derek bought a house for £140,000 and sold it for £145,500. To work out Derek's percentage profit, we need to use the formula:
Profit percentage = (Profit / Cost price) x 100%
Where:
- Profit = Selling price - Cost price
In this case, Derek's profit is:
- Profit = £145,500 - £140,000 = £5,500
- Derek's cost price is £140,000.
Substitute the values into the formula:
- Profit percentage = (Profit / Cost price) x 100%
- Profit percentage = (£5,500 / £140,000) x 100%
- Profit percentage = 0.0393 x 100%
- Profit percentage = 3.93%
Therefore, Derek's percentage profit is 3.93%.
~ Zeph