Real Estate Math
A Montana home appreciated from $215,000 to $258,000 over 4 years. What was the average annual appreciation rate?
A4.5%
B5%✓ Correct
C20%
D25%
Explanation
Total appreciation = ($258,000 − $215,000) ÷ $215,000 = $43,000 ÷ $215,000 = 20% total. Average annual = 20% ÷ 4 years = 5% per year (simple average).
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