If a seller sold his property for $97,000 and made a 321.74% profit, what was the purchase price?

To find the purchase price of the property, given that the seller made a profit of 321.74% on the sale price of $97,000, it’s important to understand what a profit percentage means in this context. A profit of 321.74% indicates that the seller's profit is equivalent to over three times the original purchase price.

First, let’s denote the purchase price as “P.” The profit can be calculated using the formula:

Profit = Selling Price - Purchase Price

The profit in this case is also represented as a percentage of the purchase price. Specifically, with a profit percentage of 321.74%, the seller's profit can be expressed mathematically as:

Profit = 3.2174 * P

Now, we know that the selling price is $97,000, so we can set up the equation:

$97,000 = P + 3.2174 * P

$97,000 = 4.2174 * P

To find P (the purchase price), divide $97,000 by 4.2174:

P = $97,000 / 4.2174

P ≈ $22,999.79

Rounding to the nearest whole number gives