Real Estate Math

A Montana investor purchases a rental property for $180,000 and sells it three years later for $225,000. What is the percentage appreciation?

A20%

B25%✓ Correct

C45%

D33.33%

Explanation

Appreciation = ($225,000 - $180,000) / $180,000 = $45,000 / $180,000 = 0.25 = 25%. Using the values given ($180,000, $225,000), apply the appropriate formula.. The correct answer is 25%.. This is a common calculation on the Montana real estate exam.

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