Realizing Profit from Property Investment

What is the profit realized from buying property for $2.7 million and selling it for $3.7 million? The profit realized from buying property for $2.7 million and selling it for $3.7 million is $1 million. This profit is calculated as the difference between the selling price and the purchase price.

Profit Calculation

Buying property for $2.7 million and selling it for $3.7 million presents an opportunity to make a profit. To determine the profit, we subtract the initial purchase price from the final selling price: Profit = Selling Price - Purchase Price In this case:

Profit = $3.7 million - $2.7 million
Profit = $1 million

Therefore, the profit realized from this property investment is $1 million. This represents the financial gain achieved by selling the property at a higher price than the purchase cost. In real estate investment, profit is a key indicator of the success of a transaction. In this scenario, the investor stands to gain $1 million by selling the property after four years at a price of $3.7 million.
← Answering unanswered questions in profile picture comments Understanding the impact of price ceiling in economics →