Real Estate Math

An investor purchases a property for $500,000. After 4 years, it appreciates 3% per year (simple appreciation). What is the property worth?

A$556,000
B$560,000✓ Correct
C$563,000
D$580,000

Explanation

Simple appreciation: $500,000 × (1 + 4 × 0.03) = $500,000 × 1.

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