Real Estate Math

A seller paid $175,000 for a property 8 years ago. It appreciated at 5% per year simple interest. What is the current value?

A$257,969
B$245,000✓ Correct
C$208,250
D$258,575

Explanation

Simple interest appreciation: $175,000 x (1 + 0.05 x 8) = $175,000 x 1.

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