Real Estate Math

An investor buys a rental home for $180,000. After one year, appreciation has increased the value by 4%. What is the new value?

A$184,000
B$186,200
C$187,200✓ Correct
D$188,000

Explanation

New value = $180,000 × (1 + 0.04) = $180,000 × 1.

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