Answer to Question #314084 in Civil and Environmental Engineering for Oxian

Question

Now, what if, instead, you sold the house for less than you paid for it—say, for $187,500? The same equation can be used to calculate your loss, or the negative rate of return, on the transaction.

Answer 1

The negative rate of return= $\frac{(187,500−250,000)}{250,000}\times$100

The negative rate of return =−25%