Real Estate Math
An Alaska property was purchased for $275,000 and the buyer made a 20% down payment. If the home appreciates 5% per year, what will it be worth after 2 years?
A$286,875
B$303,187.50✓ Correct
C$257,709.38
D$312,500
Explanation
Value after 2 years = $275,000 × (1.05)² = $275,000 × 1.1025 = $303,187.50. To solve this, multiply the relevant values: $275,000 at 20%.. The correct answer is $303,187.50.. This is a common calculation on the Alaska real estate exam.
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