Question

If you can buy property today for $2.7 million and sell it in four years for $3.7 million, you would realize a profit of:

a) $1 million
b) $2 million
c) $1.5 million
d) $1.7 million

Answer 1

The profit realized from buying property for $2.7 million and selling it for $3.7 million is calculated as the difference between the selling and purchase prices, which is $1 million.

Step-by-step explanation:

If you can buy property today for $2.7 million and sell it in four years for $3.7 million, the profit realized would be the difference between the selling price and the purchase price. To calculate this, you subtract the initial purchase price from the final selling price:

Profit = Selling Price - Purchase Price

Profit = $3.7 million - $2.7 million

Profit = $1 million

So the correct answer is a) $1 million.