Real Estate Math

A property originally purchased for $195,000 sells 3 years later for $240,000. What is the percentage appreciation over the holding period?

A18.75%
B22.5%
C23.08%✓ Correct
D25%

Explanation

Appreciation = (Sale Price − Purchase Price) ÷ Purchase Price = ($240,000 − $195,000) ÷ $195,000 = $45,000 ÷ $195,000 = 0.2308 = 23.

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