Question

AB and Peter bought a house for R575 000 as an investment. AB payed R245 000 and Peter payed the rest. They sold the house 5 years later and made a profit of R234 500. What is the percentage profit that they made?​

Answer 1

Answer: The total cost of the house was R575,000, of which AB paid R245,000 and Peter paid the rest, which is:

575,000 - 245,000 = 330,000

Therefore, Peter paid R330,000 for the house.

When they sold the house, they made a profit of R234,500. The total sale price of the house is:

575,000 + 234,500 = 809,500

Their total investment was the sum of the amount AB and Peter paid, which is:

245,000 + 330,000 = 575,000

The percentage profit they made is:

(profit / total investment) x 100%

= (234,500 / 575,000) x 100%

= 40.78%

Therefore, they made a profit of 40.78% when they sold the house.

Explanation: