Real Estate Math
A property was purchased for $175,000 five years ago and is now worth $210,000. What is the percentage appreciation?
A16.7%
B20%✓ Correct
C22.5%
D25%
Explanation
Appreciation = ($210,000 − $175,000) ÷ $175,000 = $35,000 ÷ $175,000 = 0.20 = 20%. Using the values given ($175,000, $210,000), apply the appropriate formula.. The correct answer is 20%.. This is a common calculation on the Idaho real estate exam.
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