Real Estate Math

A property was purchased 3 years ago for $280,000 and appreciated at 4% per year (compounded). What is the approximate current value?

A$313,600
B$313,881✓ Correct
C$316,800
D$314,800

Explanation

Compounded value = $280,000 × (1.04)^3 = $280,000 × 1.

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