Real Estate Math
A home purchased for $310,000 is sold 4 years later for $372,000. What is the annual appreciation rate (simple, not compounded)?
A4.5%
B5.0%✓ Correct
C5.5%
D6.0%
Explanation
Total appreciation = $372,000 − $310,000 = $62,000. Total % = $62,000/$310,000 = 20%. Annual simple rate = 20% ÷ 4 years = 5%.
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