If Buyer A purchases a house for $300,000 with a $60,000 down payment, what is his profit after a 25% appreciation when sold?

To determine the profit Buyer A realizes after selling the house following a 25% appreciation, it’s essential to understand both the initial investment and how the appreciation affects the property's value.

Initially, Buyer A purchases the house for $300,000 and makes a down payment of $60,000. The appreciation means the house's value increases by 25%. To calculate the new value after appreciation, you multiply the original price of the house by 1.25:

$300,000 * 1.25 = $375,000.

This means that after the appreciation, the house can be sold for $375,000.

Next, to calculate the profit, we consider how much Buyer A initially invested. The profit can be understood as the selling price minus the original purchase price, ignoring any financing or additional costs not mentioned in the scenario:

Profit = Selling Price - Purchase Price Profit = $375,000 - $300,000 = $75,000.

Thus, after selling the property at an appreciated value, the profit for Buyer A is $75,000, making this the correct answer.

This calculation reflects understanding how appreciation affects property value and how to compute profit in real estate transactions.