Real Estate Math

A seller purchased a home 5 years ago for $280,000 and sells it today for $364,000. What is the percentage increase in value?

AA. 25%
BB. 30%✓ Correct
CC. 23%
DD. 20%

Explanation

Increase = $364,000 − $280,000 = $84,000. Percentage increase = $84,000 ÷ $280,000 = 0.30 = 30%. Using the values given ($280,000, $364,000), apply the appropriate formula.. The correct answer is B. 30%.. This is a common calculation on the Georgia real estate exam.

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