A house is currently worth 50% of its original value. The land, however, has appreciated in 5 years from $60,000 to its current value of $96,000. What is the average annual rate of appreciation of the land over this 5-year period?

The average annual rate of appreciation of the land over this 5-year period is 12%

Step-by-step explanation:

Calculating the amount of appreciation, we say,

$96,000 - $60,000 = $36,000

Then, $36,000/5 years = $7,200 per year.

Finally, $7,200/$60,000 = 0.12

0.12 x 100% = 12%

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step-by-step explanation: