The value of a one-bedroom flat in Pretoria increased from R151 300.00 to R230 592.50 over a 5-year period. The average annual rate of increase in the price of the one-bedroom flat over 5 years, rounded to two decimal places, is A.7.22%B.7.89%C.8.79%D.8.97%

To calculate the average annual rate of increase, we first need to find the total increase over the 5-year period.

Step 1: Calculate the total increase Total increase = Final value - Initial value Total increase = R230 592.50 - R151 300.00 = R79 292.50

Step 2: Calculate the rate of increase Rate of increase = (Total increase / Initial value) * 100 Rate of increase = (R79 292.50 / R151 300.00) * 100 = 52.39%

Step 3: Calculate the average annual rate of increase Average annual rate of increase = Total rate of increase / Number of years Average annual rate of increase = 52.39% / 5 = 10.48%

However, this is not the correct way to calculate the average annual rate of increase because it doesn't take into account the compounding effect.

The correct way is to use the formula for compound interest:

(1 + r)^n = Final value / Initial value

Where: r = annual rate of increase n = number of years

Solving for r gives us:

r = ((Final value / Initial value)^(1/n)) - 1 r = ((R230 592.50 / R151 300.00)^(1/5)) - 1 = 8.79%

So, the correct answer is C. 8.79%.