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Question:

An investor made a $40,000 down payment on a $400,000 condominium. One year later, the property increased 10% in value. This resulted in a $40,000 or 100% gain on the $40,000 equity. This is an example of ____

A leverage.
Explaination

Leverage is the use of debt financing of an investment to maximize the return per dollar of equity invested.