Real Estate Math
A home purchased for $480,000 appreciates at 4% compounded annually. What is its value after 2 years?
A$499,200
B$518,400
C$519,168✓ Correct
D$538,420
Explanation
Year 1: $480,000 × 1.04 = $499,200. Year 2: $499,200 × 1.04 = $519,168. Formula: $480,000 × (1.04)² = $480,000 × 1.0816 = $519,168.
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