Real Estate Math

An Oregon home was purchased 5 years ago for $320,000. It has appreciated at an average of 4% per year. What is the approximate current value?

A$384,000
B$320,000✓ Correct
C$400,000
D$375,000

Explanation

Using compound appreciation: $320,000 × (1.04)^5 = $320,000 × 1.

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