Real Estate Math
A Minnesota home's value increased from $240,000 to $276,000 in 2 years. What was the average annual rate of appreciation?
A7.2%
B7.5%✓ Correct
C8.0%
D15%
Explanation
Total appreciation = ($276,000 - $240,000) / $240,000 = $36,000 / $240,000 = 15% over 2 years. Average annual rate (simple) = 15% / 2 = 7.
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