Real Estate Math
A Rhode Island property was purchased for $320,000 five years ago. It is now appraised at $400,000. What is the total appreciation in dollars and percentage?
A$80,000 and 20%
B$80,000 and 25%✓ Correct
C$70,000 and 21.9%
D$90,000 and 28.1%
Explanation
Appreciation: $400,000 - $320,000 = $80,000. Percentage: $80,000 / $320,000 = 0.25 = 25%. Using the values given ($320,000, $400,000), apply the appropriate formula.. The correct answer is $80,000 and 25%.. This is a common calculation on the Rhode Island real estate exam.
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