Question

Broker A is hired by Seller B to market her property for $300,000. Broker A decides to buy the property himself and pays full price. A week later, Broker A sells the property for $325,000. Which of the following statements is true?

Option 1: Broker A made a profit of $25,000.
Option 2: Broker A made a profit of $275,000.
Option 3: Broker A made a profit of $300,000.
Option 4: Broker A made a profit of $0.

Answer 1

Broker A made a profit of $25,000 by buying a property for $300,000 and selling it later for $325,000.

Step-by-step explanation:

In the scenario presented, Broker A was hired to market a property for $300,000 and decided to purchase the property himself for the full price.

Subsequently, Broker A sold the property for $325,000. To calculate the profit Broker A made from this transaction, we subtract the purchase price from the selling price.

Therefore, the profit is $325,000 (selling price) - $300,000 (purchase price) = $25,000.

Considering the options provided, the correct statement is: Option 1: Broker A made a profit of $25,000.