Real Estate Math

A Missouri home was purchased for $150,000 five years ago and now sells for $187,500. What is the percentage increase in value?

A20%
B25%✓ Correct
C30%
D35%

Explanation

Increase = $187,500 − $150,000 = $37,500. Percentage = $37,500 ÷ $150,000 = 25%. Using the values given ($150,000, $187,500), apply the appropriate formula.. The correct answer is 25%.. This is a common calculation on the Missouri real estate exam.

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