Real Estate Math
A property owner paid $280,000 for a home 5 years ago. It is now appraised at $336,000. What percentage did the property appreciate?
A16.7%
B20%✓ Correct
C25%
D17.5%
Explanation
Appreciation = ($336,000 − $280,000) ÷ $280,000 = $56,000 ÷ $280,000 = 0.20 = 20%. Using the values given ($280,000, $336,000), apply the appropriate formula.. The correct answer is 20%.. This is a common calculation on the Pennsylvania real estate exam.
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