Real Estate Math
A Kansas investor pays $550,000 for a property and plans to sell in 5 years. If the property appreciates at 4% annually (compounding), what is the approximate value after 5 years?
A$660,000
B$669,093✓ Correct
C$670,000
D$688,000
Explanation
Value = $550,000 × (1.04)^5 = $550,000 × 1.2167 = $669,185 ≈ $669,093. To solve this, multiply the relevant values: $550,000 at 4%.. The correct answer is $669,093.. This is a common calculation on the Kansas real estate exam.
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