Real Estate Math
A home was purchased for $225,000 and sold 4 years later for $270,000. What was the percentage appreciation over the entire 4-year period?
A16.7%
B20.0%✓ Correct
C25.0%
D22.2%
Explanation
Appreciation = ($270,000 − $225,000) ÷ $225,000 = $45,000 ÷ $225,000 = 20.0%. Using the values given ($225,000, $270,000), apply the appropriate formula.. The correct answer is 20.0%.. This is a common calculation on the Alabama real estate exam.
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