\( A B \) and Peter bought a house for R575000 as an investment. AB payed R245000 and Peter payed the rest. They sold the house 5 years later and made a profit of R234500.
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Did you know that the value of real estate can fluctuate dramatically over time due to market conditions, economic factors, and even neighborhood developments? When AB and Peter decided to sell their house after 5 years, they not only recouped their initial investment but also earned a profit that suggests they picked a good time to enter the real estate market! To break down the numbers, let’s see the total amount Peter paid for the house—R575,000 minus AB's R245,000 means Peter forked out R330,000. With a profit of R234,500 on their total cost of R575,000, Peter and AB can calculate their return on investment (ROI) to see just how well their venture paid off, making sure to consider other costs like maintenance and taxes too!