Real Estate Math
An Arizona investor paid $500,000 for a rental property. After one year, the property has appreciated 4%. What is the new value of the property?
A$504,000
B$520,000✓ Correct
C$540,000
D$480,000
Explanation
Appreciation = $500,000 × 4% = $20,000. New value = $500,000 + $20,000 = $520,000. To solve this, multiply the relevant values: $500,000 at 4%.. The correct answer is $520,000.. This is a common calculation on the Arizona real estate exam.
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