Real Estate Math
A Minnesota property was purchased for $180,000 and sold 5 years later for $225,000. What was the percentage increase in value?
A20%
B25%✓ Correct
C22.5%
D28%
Explanation
Percentage increase = (Appreciation / Original Price) x 100 = ($225,000 - $180,000) / $180,000 x 100 = $45,000 / $180,000 x 100 = 25%. Understanding property appreciation is important for both buyers and sellers in evaluating Minnesota real estate investments.
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