Real Estate Math

A South Dakota investor purchases a property for $400,000. If the property appreciates 3% annually for 4 years, what is the value at the end of 4 years?

A$448,000
B$450,000
C$449,932✓ Correct
D$448,986

Explanation

Using compound appreciation: $400,000 × (1.03)^4 = $400,000 × 1.

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