An investment property sold for $500,000. The investor paid $350,000 five years ago. What is the percentage gain?
Why 42.86% Is Correct
Answer B: 42.86%
Exam Tip: Real Estate Math
Math questions are formula-based. Memorize the key formulas: commission splits, proration, cap rate (NOI ÷ Value), GRM (Price ÷ Gross Rent), and LTV (Loan ÷ Value). Practice converting between annual and monthly figures.
People Also Study
Related Arizona Questions
- An Arizona investor paid $400,000 for a property and wants a 9% return on investment. What annual net income is required?Real Estate Math
- An Arizona investor paid $500,000 for a rental property. After one year, the property has appreciated 4%. What is the new value of the property?Real Estate Math
- An Arizona property has an annual property tax bill of $3,600. The tax is paid in two installments. The seller is closing on October 1. Using a 365-day proration, how many days of taxes has the seller already 'used' (January 1 through September 30)?Real Estate Math
- An appraiser values an Arizona commercial property using a cap rate of 7% and an NOI of $63,000. What is the indicated value?Property Valuation
- A buyer in Arizona closes on March 15. The annual property taxes are $4,380 and are paid in arrears. Using a 365-day year, how much does the seller owe the buyer in a tax proration (January 1 through March 14)?Real Estate Math
- What is the minimum number of years of active real estate experience required before an Arizona salesperson may apply for a broker license?Arizona License Law
- An Arizona commercial property is sold in a '1031 exchange.' The investor avoids immediate capital gains tax by:Property Ownership
Key Terms to Know
The gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Math Concepts
Study This Topic
Practice More Arizona Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →