Real Estate Math
A Hawaii property with a replacement cost of $800,000 has 20% depreciation. What is the depreciated value of the improvements?
AA. $640,000✓ Correct
BB. $160,000
CC. $720,000
DD. $600,000
Explanation
Depreciated value = $800,000 × (1 - 0.20) = $800,000 × 0.80 = $640,000. To solve this, multiply the relevant values: $800,000 at 20%.. The correct answer is A. $640,000.. This is a common calculation on the Hawaii real estate exam.
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