Real Estate Math

A North Dakota investment property costs $425,000. After 5 years, it sells for $510,000. What is the total appreciation percentage?

A17.6%
B20%✓ Correct
C15%
D25%

Explanation

Total appreciation = (Sale price - Purchase price) ÷ Purchase price × 100 = ($510,000 - $425,000) ÷ $425,000 × 100 = $85,000 ÷ $425,000 × 100 = 20%.

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