Answer to Question #314083 in Civil and Environmental Engineering for Oxian

Question

Say that you buy a house for $250,000 (for simplicity let's assume you pay 100% cash). Six years later, you decide to sell the house maybe your family is growing and you need to move into a larger place. You are able to sell the house for $335,000, after deducting any realtor's fees and taxes. Find simple rate of return on the purchase and sale of the house.

Answer 1

Simple rate of return= $\frac{335,000-250,000}{250,000}\times100= 34$ %

Simple rate of return= 34%