Madison bought an empty lot for $2,000 and later sold it for a 25% profit. How much did Madison sell the lot for? A) $500 B) $1,500 C) $2,500 D) $3,000

Accepted Solution

Answer:   C)  $2,500Step-by-step explanation:Madison's profit is 25% of the $2000 paid, so is ...   0.25 × $2000 = $500That means the lot was sold for ...   $2000 + 500 = $2500_____Profit can also be expressed as a percentage of the selling price. If that were the case here, Madison's initial cost would be 0.75 of the $2666.67 selling price, and the 25% profit would be $666.67. Since that is not among the answer choices, we presume our assumption is correct that Madison's profit is measured as a percentage of cost.