Real Estate Math
A Delaware property purchased 5 years ago for $250,000 has appreciated 4% per year compounded. What is its approximate current value?
A$250,000✓ Correct
B$300,000
C$290,000
D$310,000
Explanation
Value = $250,000 × (1.04)^5 = $250,000 × 1.21665 ≈ $304,163. Compound appreciation means each year's gain is applied to the previously appreciated value.
Related Delaware Real Estate Math Questions
- Delaware's realty transfer tax is 3% of the purchase price, split equally. How much does the buyer pay in transfer tax on a $340,000 sale?
- A Delaware property has a replacement cost of $550,000, accrued depreciation of $110,000, and land value of $120,000. What is the indicated value by cost approach?
- A Delaware buyer's gross monthly income is $7,500. Using a 43% back-end (total debt) ratio, what is the maximum total monthly debt (including housing)?
- A Delaware home is listed at $319,000 and has been shown 18 times in 45 days without an offer. The seller reduces the price by 3.5%. What is the new price?
- A Delaware commercial building has 10,000 sq ft of rentable space. The annual rent is $18 per sq ft. What is the annual gross rental income?
- A Delaware owner earns $3,600/month rent. Monthly expenses: mortgage $1,800, taxes $350, insurance $120, maintenance $230. What is the monthly cash flow?
- A Delaware homeowner sells their home for $425,000 after owning it for 5 years. Original purchase price was $330,000. Selling costs total $28,000. What is the net gain?
- A buyer obtains a $300,000 mortgage at 6% annual interest. What is the first month's interest payment?
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →