Solve the problem.
-Margaret takes out a loan on a fixer-upper house. She then spends $4998 in repairs and improvements. She sells the house for $88,320. If the pay-off for the loan that she took out to buy the house is $73,101, what is her net? Is
It profit or loss?
A) -$20,217, loss
B) $10,221, profit
C) $20,217, profit
D) $166,419, profit

Question

Quizplus · Accepted Answer

Margaret's net is calculated by subtracting the total costs (loan payoff and repairs) from the selling price. Total costs = $73,101 (loan payoff) + $4,998 (repairs) = $78,099. Selling price = $88,320. Net = $88,320 - $78,099 = $10,221, which is a profit.

Solve the Problem. -Margaret Takes Out a Loan on a Fixer-Upper House. She