Real Estate Math

A property was purchased for $300,000 and sold 5 years later for $400,000. What is the total percentage increase in value?

A25%
B33%
C40%
D33.33%✓ Correct

Explanation

Percentage increase = (New Value − Old Value) ÷ Old Value = ($400,000 − $300,000) ÷ $300,000 = $100,000 ÷ $300,000 = 0.3333 = 33.33%.

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