Real Estate Math
A New Mexico investment property purchased for $500,000 generates 10% annual appreciation. What is the value after 2 years?
A$550,000
B$600,000
C$605,000✓ Correct
D$620,000
Explanation
Year 1: $500,000 × 1.10 = $550,000. Year 2: $550,000 × 1.10 = $605,000. To solve this, multiply the relevant values: $500,000 at 10%.. The correct answer is $605,000.. This is a common calculation on the New Mexico real estate exam.
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