The formula to calculate the Appreciation Rate (AR) is:
\[ \text{AR} = \frac{\text{CV} - \text{IV}}{\text{IV}} \times 100 \]
Where:
Let's consider an example:
Using the formula to calculate the Appreciation Rate:
\[ \text{AR} = \frac{150000 - 100000}{100000} \times 100 = \frac{50000}{100000} \times 100 = 50\% \]
This demonstrates that with an initial value of $100,000 and a current value of $150,000, the appreciation rate would be 50%.
