Real Estate Math

A buyer paid $325,000 for a home. Two years later they sell it for $357,500. What was the annual rate of appreciation (simple)?

A4%
B5%✓ Correct
C10%
D12%

Explanation

Total appreciation = $357,500 − $325,000 = $32,500. Percentage = $32,500 ÷ $325,000 = 10% over 2 years.

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