Andrew purchased a house and sold it a year later at a price 25%

Question

Andrew purchased a house and sold it a year later at a price 25% higher than the price at which he bought the house. If he made a $120,000 profit from the purchase and sale of the house, at what price did he sell the house?

A) $480,000
B) $500,000
C) $600,000
D) $680,000
E) $720,000

Show Answer

Official Answer

C

A) $480,000
B) $500,000
C) $600,000
D) $680,000
E) $720,000

jitinsharma · Answer

0.25n=120000$
n=480000$

he bought his new house for= 480000$
and
sold for 480000$+120000$=600000$

Option = C

sayan640 · Answer

Is this question legit ? Is this verbiage correct --- "............$120,000 profit  from the purchase and sale  of the house.." ?
I think the statement  that he made profit  from both purchase and sale  is a bit problematic ? Can you please post your explanation ?  Bunuel

MartyMurray · Answer

Yes, that wording effectively expresses the meaning.

The point is that he first purchased and then sold the house and that, in making those two moves, he made a profit of $120,000.

luisdicampo · Answer

Deconstructing the Question

The house was sold for  25% more  than the purchase price. 
The profit equals the increase over the purchase price. 
Thus the profit represents  25% of the purchase price .

Step-by-step

Let purchase price be  P .

Profit:

0.25P

Given:

0.25P = 120000

Solve:

P = \frac{120000}{0.25}

P = 480000

Selling price:

1.25 	imes 480000

= 600000

Answer: 600000

Andrew purchased a house and sold it a year later at a price 25%

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Andrew purchased a house and sold it a year later at a price 25%

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