Property Valuation
A property that sold for $350,000 five years ago is similar to one that sold for $425,000 today in a comparable neighborhood. The annual appreciation rate is approximately:
A4.0%✓ Correct
B3.9%
C7.5%
D2.8%
Explanation
Total appreciation = ($425,000 − $350,000) ÷ $350,000 = $75,000 ÷ $350,000 = 21.4%.
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