Question

An owner of a property purchases it for $150,000 and is able to sell it for $250,000 within three months. Which of the following is correct?

Option 1: The owner made a profit of $100,000.
Option 2: The owner made a profit of $50,000.
Option 3: The owner made a profit of $200,000.
Option 4: The owner made a profit of $75,000.

Answer 1

The owner made a profit of $100,000 by subtracting the purchase cost ($150,000) from the selling price ($250,000).

Step-by-step explanation:

The owner of a property purchased it for $150,000 and sold it for $250,000. To calculate the profit, we subtract the cost price from the selling price. Therefore, the profit is $250,000 (selling price) - $150,000 (cost price) = $100,000. Thus, the correct option is that the owner made a profit of $100,000.