Real Estate Math
An investor purchases a rental property for $225,000. After 5 years the property is worth $270,000. What is the percentage appreciation?
A16.7%
B20%✓ Correct
C25%
D22.2%
Explanation
Appreciation % = (New Value − Original Value) / Original Value = ($270,000 − $225,000) / $225,000 = $45,000 / $225,000 = 20%.
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