Real Estate Math

A property was purchased for $270,000 and sold 4 years later for $337,500. What was the annual appreciation rate (simple, not compounded)?

A5%
B5.5%
C6.25%✓ Correct
D7%

Explanation

Total appreciation = $337,500 − $270,000 = $67,500. Total % = $67,500 ÷ $270,000 = 25%.

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