Real Estate Math
A Connecticut buyer purchases a home for $420,000 and five years later sells it for $504,000. What was the average annual appreciation rate?
A3%
B4%✓ Correct
C5%
D6%
Explanation
Total appreciation = ($504,000 - $420,000) ÷ $420,000 = $84,000 ÷ $420,000 = 20%. Average annual rate = 20% ÷ 5 years = 4% per year.
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