Real Estate Math
A Hawaii property costs $1,500,000 to build on land worth $300,000. After 5 years of 2% annual depreciation on the building, what is the value using the cost approach?
AA. $1,650,000✓ Correct
BB. $1,640,000
CC. $1,500,000
DD. $1,660,000
Explanation
Building depreciates at 2% × 5 = 10%. Depreciated building = $1,500,000 × 0.90 = $1,350,000. Cost approach value = $1,350,000 + $300,000 = $1,650,000.
Related Hawaii Real Estate Math Questions
- A Hawaii lot is 75 feet wide and 200 feet deep. How many square feet is the lot?
- A Hawaii rental with potential gross income of $60,000 has operating expenses of $24,000. What is the operating expense ratio?
- A Hawaii rental property costs $950,000 to purchase. Annual gross rents are $76,000. What is the GRM?
- A Hawaii property's NOI increased from $85,000 to $102,000. If the cap rate remains at 6%, what is the increase in property value?
- A Hawaii property is assessed at $480,000. The county tax rate is $3.50 per $1,000 of assessed value. What is the annual property tax?
- A Hawaii agent lists a property at $1,250,000. After 45 days with no offers, the seller reduces the price by 8%. What is the new list price?
- A Hawaii property was last sold for $385,000. After 8% appreciation, what is the current value?
- A Hawaii property has a potential gross income of $72,000. A 5% vacancy rate and 2% credit loss rate apply. What is the effective gross income?
Practice More Hawaii Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Hawaii Quiz →