Question

An investor flips a house, selling it for $88,000. If her profit was 30%, how much did she pay for the house originally? Round to two decimal places.

Answer 1

Answer:

She paid $67692.31 for the house originally.

Step-by-step explanation:

Let the initial cost of the house be $x$ dollars.

Given:

Selling price of the house (S.P) = $88000

Profit made = 30% of 'x' = $0.30x$

We know that,

Profit = Selling Price - Original price

$0.30x = 88000 - x$

Adding $x$ on both sides, we get:

$0.30x+x = 88000\\\\1.3x=88000$

Dividing both sides by 1.3, we get:

$x = 88000/1.3\\\\x = \ 67692.307$

Rounding to 2 decimal places, we get:

$x=\ 67692.31$

Therefore, she paid $67692.31 for the house originally.