Real Estate MathIntermediateDelaware Exam
An appraiser uses the cost approach on a 15-year-old building with a 45-year economic life. The reproduction cost new is $450,000. What is the depreciated value of the improvements?
A$300,000Correct
B$330,000
C$305,000
D$315,000
Why $300,000 Is Correct
Answer A: $300,000
Depreciation rate = Age ÷ Economic Life = 15 ÷ 45 = 33.33%.
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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