Real Estate Math
A home was purchased for $290,000 and sold 4 years later for $365,000. What is the annual appreciation rate (simple interest method)?
A5.99%
B6.47%✓ Correct
C5.18%
D7.50%
Explanation
Total appreciation = ($365,000 − $290,000) ÷ $290,000 = $75,000 ÷ $290,000 ≈ 25.86%. Simple annual rate = 25.86% ÷ 4 years ≈ 6.47% per year.
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