What percentage of profit did Mrs. Levine earn by purchasing a property at 80% of market value and reselling it for full market value?

To determine Mrs. Levine's profit percentage, it's important to first understand the concepts of purchase price and market value. If she buys a property at 80% of the market value, it implies that she spent only 80% of what the property is worth when sold at full market value.

Let's denote the full market value of the property as $100 (as a simple base for calculation). By purchasing it at 80% of this value, Mrs. Levine paid $80 ($100 x 0.80). When she resells the property for the full market value of $100, she's making a profit of $20 ($100 - $80).

To find the profit percentage, you divide the profit ($20) by the purchase price ($80) and then multiply by 100 to get the percentage:

Profit Percentage = (Profit / Purchase Price) x 100
Profit Percentage = ($20 / $80) x 100 = 25%

Thus, her profit percentage based on her initial investment is 25%. This indicates that for every dollar she invested, she gained $0.25 in profit when selling at market value, which is why the answer of 25% is correct.