Real Estate Math

A Utah home that sold for $350,000 two years ago now sells for $399,000. What is the approximate annual appreciation rate?

A7%✓ Correct
B6.7%
C14%
D5%

Explanation

Total appreciation = ($399,000 − $350,000) ÷ $350,000 ≈ 14%. Annual rate ≈ 14% ÷ 2 = 7% per year (simple approximation).

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