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:
= [tex]\frac{35 000}{165 000}[/tex]
= 0.2121212 recurring × 100
= 21,21%
Percentage of profit on sale amount:
= [tex]\frac{35000}{200000}[/tex]
= 0.175 × 100
= 17,5%
