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A comparable property showed adjusted value of $40,000. The property sold two years ago, and the adjustments indicated a 7% annual appreciation rate. Assuming the appreciation was the only adjustment, how much was the total adjustment

Respuesta :

Answer:

5063

Explanation:

5796 is the correct answer.

P = 40,000 Value of building sold 2 years ago

i = 75 Inflation rate

t = 2 years

V = Current value

V = P(1+i)^t

V = 40000(1.07)2 1.07 = 1+0.07 where 0.07 is the percentage increase in decimal

V = 45,796

The percentage increase is the difference between the current value and the value two years ago.

45796 - 40000 = 5796

A home valuation refers to a home or investment property that appreciates in value over time. As the property increases in value, the owner can sell it for a profit or receive more income from the tenants through monthly rent.

A valuation or capital appreciation is an increase in the price or value of an asset. Valuation occurs when the market value of an asset is higher than the price an investor paid for that asset. It may refer to an increase in the value of real estate, stocks, bonds, or other investable assets.

Disclaimer: Learn more about the annual appreciation rate here https://brainly.com/question/18297079

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