Real Estate Math

A property in Texas was purchased for $180,000 five years ago and now sells for $225,000. What is the percentage of appreciation?

A20%
B22%
C25%✓ Correct
D28%

Explanation

Appreciation = ($225,000 − $180,000) ÷ $180,000 = $45,000 ÷ $180,000 = 0.25 = 25%.

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