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7 October, 14:59

if the rate of appreciation in the past year has been 2% of the previous years value what is the current value of a house that was appraised at 800,000 one year ago

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  1. 7 October, 18:24
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    816,000

    Explanation:

    Since in the past, annual rate of appreciation has been 2%, it is reasonable to assume that the same rate of appreciation will apply in the current year.

    Accordingly, for a house appraised at 800,000 one year ago, its current value is calculated as follows.

    Current Value = Previous Year's Value * (1 + Appreciation Rate)

    = 800,000 * (1 + 2%)

    = 800,000 * 1.02

    = 816,000
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