Real Estate Math
A Michigan seller paid $225,000 for a property 5 years ago. They sell it today for $312,000. What is the total appreciation percentage?
A27.9%
B38.7%✓ Correct
C28.0%
D43.2%
Explanation
Appreciation = ($312,000 - $225,000) / $225,000 = $87,000 / $225,000 = 0.3867 = 38.67% ≈ 38.7%. Using the values given ($225,000, $312,000), apply the appropriate formula.. The correct answer is 38.7%.. This is a common calculation on the Michigan real estate exam.
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