Question

Harris purchased a house for 850,000 dollars and spent 150,000 dollars on its repairs. He sold the house for 1,200,000 dollars.
Did he make a profit or a loss? Find the percentage of profit or loss made.

• A. 50% loss
• B. 50% profit
• C. 20% loss
• D. 20% profit

Answer 1

The correct option is D 20% profit

Cost of the house = 850000 dollars
Amount spent on repairs = 150000 dollars
This amount will be added to the cost of the house.

Total cost of the house (CP) = 850000 dollars + 150000 dollars
= 1000000 dollars

Selling price of the house = 1200000 dollars

Since SP > CP, Harris has made a profit.

Profit = SP – CP
= 1200000 – 1000000
= 200000 dollars

Profit % = $\frac{profit}{CP}$ × 100
= $\frac{200000}{1000000}$ × 100
= $\frac{1}{5}$ × 100
= 20%

Therefore, Harris makes a profit of 20%.