Tune bought a house for #1250000 and spent #350000 to renovate it.he then sold the house for #200000.what is the percentage gain
To find the percentage gain, we need to calculate the difference between the total cost (purchase price + renovation cost) and the selling price, and then divide that difference by the total cost and multiply by 100 to get the percentage.
Total cost = Purchase price + Renovation cost
Total cost = #1250000 + #350000 = #1600000
Difference = Selling price - Total cost
Difference = #200000 - #1600000 = -#1400000
Percentage gain = (Difference / Total cost) * 100
Percentage gain = (-#1400000 / #1600000) * 100
Therefore, the percentage gain is -87.5%.
To calculate the percentage gain, we need to determine the profit made on the sale of the house.
Profit = Selling Price - Total Cost
Profit = #200000 - (#1250000 + #350000)
Profit = #200000 - #1600000
Profit = -#1400000
Since the profit is negative, it means there was a loss rather than a gain in this scenario.
To calculate the percentage loss, we use the formula:
Percentage Loss = (Loss / Total Cost) × 100
Percentage Loss = (-#1400000 / #1600000) × 100
Percentage Loss = -0.875 × 100
Percentage Loss = -87.5%
So, the percentage loss is 87.5%.