A property in Park City is purchased for $1,200,000 and sold 3 years later for $1,440,000. What is the total percentage appreciation?

Explanation

Appreciation = ($1,440,000 − $1,200,000) ÷ $1,200,000 = $240,000 ÷ $1,200,000 = 0.20 = 20%. Using the values given ($1,200,000, $1,440,000), apply the appropriate formula.. The correct answer is 20%.. This is a common calculation on the Utah real estate exam.