Real Estate Math
A Michigan investor buys a property for $500,000 and sells it 3 years later for $575,000. What is the total percentage appreciation over the holding period?
A12%
B15%✓ Correct
C10%
D18%
Explanation
Total appreciation = (Sale Price − Purchase Price) ÷ Purchase Price = ($575,000 − $500,000) ÷ $500,000 = $75,000 ÷ $500,000 = 15%.
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