If a property is purchased for 60% of its asking price and resold for 100% of the original asking price, what is the profit percentage?

To determine the profit percentage from this real estate transaction, we first need to understand how profit is calculated based on the costs involved in the purchase and the selling price.

When the property is purchased for 60% of its asking price, let's denote the asking price as ( P ). The purchase price would thus be ( 0.6P ).

The property is then resold for 100% of the original asking price, which is ( P ).

To find the profit, we subtract the purchase price from the selling price:

[ \text{Profit} = \text{Selling Price} - \text{Purchase Price} = P - 0.6P = 0.4P ]

Now that we have the profit, we can find the profit percentage relative to the purchase price. The profit percentage is calculated using the formula:

[ \text{Profit Percentage} = \left( \frac{\text{Profit}}{\text{Purchase Price}} \right) \times 100 ]

Substituting the values we have:

[ \text{Profit Percentage} = \left( \frac{0.4P}{0.6P} \right) \times 100 =