A lot purchased for $10,500 is sold a year later at a loss of 20%. What is the monetary loss from the sale?

To determine the monetary loss from the sale of the lot, first, we need to understand the concept of loss percentage in relation to the original purchase price. The lot was bought for $10,500. If it is sold at a loss of 20%, we need to calculate what 20% of the original price is.

Calculating 20% of $10,500 involves multiplying the total price by 0.20:

20% of $10,500 = $10,500 x 0.20 = $2,100.

This amount, $2,100, represents the loss incurred on the sale of the lot. When the property is sold for a loss of that percentage, we find the sale price by deducting this loss from the original price, which would give you $10,500 - $2,100 = $8,400 as the selling price.

Thus, the monetary loss from the sale is indeed $2,100, making this the correct answer. Understanding how to calculate percentage losses is essential in real estate transactions and financial assessments in general.