Real Estate Math

A Nevada property was purchased for $200,000 three years ago and now sells for $260,000. What is the annual appreciation rate (simple)?

A8.5%
B10%✓ Correct
C7.5%
D6.7%

Explanation

Total appreciation = $60,000 / $200,000 = 30% over 3 years. Simple annual rate = 30% / 3 = 10% per year.

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