Real Estate Math
A North Dakota home was purchased for $250,000. After 5 years of 3% annual appreciation, what is the approximate value?
A$278,750
B$285,000
C$289,819✓ Correct
D$295,000
Explanation
Compounded appreciation: $250,000 × (1.03)^5 = $250,000 × 1.15927 = $289,819 (approximately). To solve this, multiply the relevant values: $250,000 at 3%.. The correct answer is $289,819.. This is a common calculation on the North Dakota real estate exam.
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