Real Estate Math
A Texas property purchased for $250,000 two years ago is now worth $280,000. The annual appreciation rate (simple) is approximately:
A5%
B6%✓ Correct
C7%
D12%
Explanation
Total appreciation = ($280,000 − $250,000) ÷ $250,000 = $30,000 ÷ $250,000 = 12% over 2 years. Annual rate = 12% ÷ 2 = 6%.
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