Real Estate Math

An Alaska home appreciates 4% per year for 3 years starting at $275,000. What is the value at the end of year 3?

A$306,900
B$275,000✓ Correct
C$308,450
D$309,200

Explanation

Compound appreciation: $275,000 × (1.04)^3 = $275,000 × 1.

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