What was the percent of profit that Bill made from selling the lots he purchased?

To determine the percent of profit that Bill made from selling the lots, you would calculate the profit as a percentage of his original purchase price. The formula for calculating percent profit is:

Percent Profit = (Profit / Cost Price) × 100

In this case, if the correct answer is 25%, it indicates that Bill sold the lots for an amount that represented a 25% profit over his initial investment. This means that for every dollar he spent on purchasing the lots, he made an additional 25 cents in profit when he sold them.

To reach 25% profit, the selling price of the lots was 125% of the cost price, since the cost price is included in the selling price along with an additional profit amount. Therefore, if he bought the lots for $100, selling them for $125 would give him a 25% profit.

This method of calculating profit is crucial in real estate and business in general, as it directly impacts decision-making regarding pricing, investment returns, and overall financial success.