Real Estate MathAppreciationMEDIUM
Blake bought his home 5 years ago for $115,000. He sold it for $145,000. What is the annual rate of appreciation?
Correct Answer
A) 5.20%
Total appreciation = ($145,000 - $115,000) ÷ $115,000 = 26.09%. Annual = 26.09% ÷ 5 = 5.22% ≈ 5.20%
Answer Options
A
5.20%B
6.00%C
8.20%D
8.79%Video Explanation3 min
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Related Topics & Key Terms
Related Topics:
property-valuation-methodsreal-estate-investment-analysis
Key Terms:
annual appreciation ratesimple appreciationrate of returnproperty value increaseinvestment performance
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