Real Estate MathIntermediateDelaware Exam
A Delaware property's land is valued at $80,000 and the improvements at $220,000. Using a 40-year economic life and 10 years of age, what is the straight-line depreciation for one year?
A$4,500
B$5,500Correct
C$7,333
D$3,500
Why $5,500 Is Correct
Answer B: $5,500
Annual depreciation = Improvement Value ÷ Economic Life = $220,000 ÷ 40 = $5,500 per year. Land is not depreciated.
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.
Key Real Estate Math Terms in This Question
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