Real Estate Math
A Rhode Island property was purchased for $200,000 and sold five years later for $275,000. What is the percentage appreciation?
A27.5%
B37.5%✓ Correct
C45.0%
D62.5%
Explanation
Appreciation = ($275,000 - $200,000) / $200,000 = $75,000 / $200,000 = 0.375 = 37.5%. Using the values given ($200,000, $275,000), apply the appropriate formula.. The correct answer is 37.5%.. This is a common calculation on the Rhode Island real estate exam.
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