Real Estate MathIntermediateDelaware Exam
An investor purchases a property for $500,000. After 4 years, it appreciates 3% per year (simple appreciation). What is the property worth?
A$556,000
B$560,000Correct
C$563,000
D$580,000
Why $560,000 Is Correct
Answer B: $560,000
Simple appreciation: $500,000 × (1 + 4 × 0.03) = $500,000 × 1.
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.
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Key Terms to Know
Joint Tenancy
Co-ownership where two or more people hold equal, undivided interests with the right of survivorship — when one owner dies, their share passes to the surviving owners.
Transfer TaxA tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
State-Specific Concepts
License Law
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