Real Estate Math
A property in Fort Wayne, Indiana was purchased for $180,000 and sold 5 years later for $225,000. What is the percentage appreciation?
A20%
B22.5%
C25%✓ Correct
D27.5%
Explanation
Appreciation = ($225,000 − $180,000) ÷ $180,000 = $45,000 ÷ $180,000 = 0.25 = 25%. Using the values given ($180,000, $225,000), apply the appropriate formula.. The correct answer is 25%.. This is a common calculation on the Indiana real estate exam.
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