Real Estate by the Numbers by Dave Meyer. Help!

[Pat Quaranto]

Just finished reading Chapter 7 which goes over Expected Value. I’m having a hard time figuring out the answer to the last question at the end of the chapter in the Hone Your Skills section.

I’ve done it multiple times and keep getting a different answer ($2500) than the book gives ($500). I googled it and it seems someone else has had the same issue. (I attached a photo with the question below).

Can anyone please explain why I got the answer I got (or tell me it’s wrong in the book, lol)? I can explain what I plugged in for the Expected Value formula if need be.

Thanks!!