Real Estate Math
A property was purchased for $320,000 and sold 3 years later for $389,000. What is the percentage of appreciation?
A17.8%
B21.6%✓ Correct
C15.4%
D23.0%
Explanation
Appreciation = ($389,000 − $320,000) ÷ $320,000 = $69,000 ÷ $320,000 = 0.2156 = 21.56% ≈ 21.6%.
Related California Real Estate Math Questions
- A property's effective gross income is $108,000 per year. Operating expenses are $42,000. At a 7% cap rate, what is the estimated value?
- A property is assessed at 80% of its market value of $400,000. The tax rate is $12 per $1,000 of assessed value. What is the annual property tax?
- A property has an assessed value of $420,000. California's Proposition 13 limits the property tax rate to 1% of assessed value. What is the base annual property tax?
- A property sells for $450,000. The commission rate is 5.5%. What is the total commission?
- A buyer makes a $75,000 down payment on a $375,000 home. What is the loan-to-value (LTV) ratio?
- A building has a gross annual income of $120,000 and a vacancy/collection loss of 5%. Net operating expenses are $40,000. What is the NOI?
- Annual property taxes of $5,400 are to be prorated at a July 1 closing. The tax year runs January 1 to December 31 and taxes are paid in arrears. How much does the seller owe the buyer as a proration credit?
- A buyer purchases a home for $750,000 and makes a 20% down payment. What is the loan amount?
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →