Real Estate Math

A Minnesota home was purchased for $185,000 and is now worth $247,900. By what percentage has it appreciated?

A34%✓ Correct
B33%
C25%
D40%

Explanation

Appreciation percentage = (Current value - Purchase price) / Purchase price = ($247,900 - $185,000) / $185,000 = $62,900 / $185,000 = 0.34 = 34%. This is the total appreciation from the purchase price to the current value, expressed as a percentage of the original investment.

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