Real Estate Math
An investor bought a property at $200,000 and sold it 4 years later for $260,000. What is the average annual appreciation?
A7.5%
B6.0%
C6.25% (of original)
D7.5% per year simple✓ Correct
Explanation
Total appreciation = ($260,000 − $200,000) ÷ $200,000 = 30% over 4 years. Simple annual rate = 30% ÷ 4 = 7.
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