Real Estate Math
A NJ property was purchased for $175,000. It has appreciated at 4% per year. What is the approximate value after 5 years?
A$210,000
B$212,883✓ Correct
C$210,083
D$209,000
Explanation
Using compound appreciation: $175,000 × (1.04)^5 = $175,000 × 1.21665 = $212,914, approximately $212,883 rounded. Each year the value grows by 4% of the prior year's value.
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