Real Estate Math

A house was purchased for $200,000 and sold 3 years later for $250,000. What is the percentage increase in value?

A20%
B25%✓ Correct
C50%
D125%

Explanation

Percentage increase = (New Price - Old Price) ÷ Old Price × 100 = ($250,000 - $200,000) ÷ $200,000 × 100 = $50,000 ÷ $200,000 × 100 = 25%.

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