Real Estate Math

A home in Raleigh was purchased for $320,000 and sold 4 years later for $384,000. What was the percentage appreciation over the 4 years?

A15%
B20%✓ Correct
C25%
D18%

Explanation

Appreciation: ($384,000 – $320,000) / $320,000 = $64,000 / $320,000 = 0.20 = 20% total appreciation over 4 years.

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