Real Estate Math
A home purchased for $220,000 appreciates 4% per year. What is its value after 2 years?
A$236,160
B$237,006
C$238,048✓ Correct
D$240,032
Explanation
Year 1 value: $220,000 × 1.04 = $228,800.
People Also Study
Related Idaho Questions
- A property appreciated 5% per year for 3 years. If the original value was $250,000, what is its current value?Real Estate Math
- A property was purchased for $300,000 and sold 5 years later for $400,000. What is the total percentage increase in value?Real Estate Math
- A home purchased for $310,000 is sold 4 years later for $372,000. What is the annual appreciation rate (simple, not compounded)?Real Estate Math
- A property in Idaho was purchased for $280,000 and sold 3 years later for $325,000. What was the percentage appreciation?Real Estate Math
Key Terms to Know
Amortization
The gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Study This Topic
Practice More Idaho Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Idaho Quiz →