Real Estate Math
A North Dakota property is purchased for $350,000. The buyer puts 25% down. If the property appreciates 4% in one year, what is the buyer's return on the down payment (simple ROE)?
A4%
B10.3%
C16%✓ Correct
D16.3%
Explanation
Down payment = $350,000 × 25% = $87,500. Appreciation = $350,000 × 4% = $14,000.
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