Jim and Jane purchased their house a year ago and have been transferred out of town. They paid $275,000 for the property and ended up after expenses with only $225,000. Their percentage of loss on the sale was:

Business · High School · Thu Feb 04 2021

Answered on

To calculate Jim and Jane's percentage loss on the sale of their house, we use the formula for percentage loss, which is:

Percentage Loss = (Loss / Original Purchase Price) x 100%

First, we need to determine the loss by subtracting the sale amount after expenses from the original purchase price:

Loss = Original Purchase Price - Sale Amount After Expenses = $275,000 - $225,000 = $50,000

Now that we have the loss, we can calculate the percentage loss:

Percentage Loss = ($50,000 / $275,000) x 100% ≈ 0.1818 x 100% ≈ 18.18%

So Jim and Jane incurred a loss of approximately 18.18% on the sale of their house.

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