Real Estate Math
A home sells for $275,000. The seller's original purchase price was $220,000. What is the percentage of appreciation?
A20%
B25%✓ Correct
C22%
D18%
Explanation
Appreciation = ($275,000 − $220,000) ÷ $220,000 = $55,000 ÷ $220,000 = 0.25 = 25%. Using the values given ($275,000, $220,000), apply the appropriate formula.. The correct answer is 25%.. This is a common calculation on the Alabama real estate exam.
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