Suppose that real domestic output in an economy is 20 units, the quantity of inputs is 10, and the price of each input is $4. An
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Answer: 21%
Explanation: The developer purchased 3 properties and he can buy each property for $20 per square foot.
Therefore: 75 × 110 =8250 square feet.
8250 × $20 = $165 000 per lot.
Each lot was sold for $200 000. Which means the developer made profits of:
$200 000 - $165 000 = $35 000 per lot.
The percentage of profit on each lot is:
Percentage of profit on cost amount:
=
= 0.2121212 recurring × 100
= 21,21%
Percentage of profit on sale amount:
=
= 0.175 × 100
= 17,5%