Real Estate Math
An Iowa house has a replacement cost of $305,000. The structure is 10 years old with a 50-year economic life. What is the straight-line annual depreciation?
A$4,083
B$5,000
C$6,100✓ Correct
D$7,250
Explanation
Annual depreciation = $305,000 ÷ 50 years = $6,100. Using the values given ($305,000), apply the appropriate formula..
Related Iowa Real Estate Math Questions
- A buyer obtains a 30-year $180,000 mortgage at 6.5% annual interest. The monthly payment (principal and interest) is $1,138.24. After the first payment, what is the approximate remaining loan balance?
- A 6-unit apartment building in Iowa has each unit renting for $750/month. What is the annual gross potential income?
- An Iowa commercial property has annual gross rents of $60,000, a vacancy rate of 5%, and operating expenses of $20,000. What is the net operating income?
- An Iowa buyer obtains an 80% LTV mortgage on a $275,000 home. What is the loan amount?
- A Des Moines home listed at $389,900 receives an offer for 95% of list price. What is the offer price?
- An Iowa property owner owes $125,000 on their mortgage and sells the property for $285,000. After paying a 6% commission and $4,500 in closing costs, what are the proceeds to the seller before paying off the mortgage?
- A buyer in Iowa obtains an 80% LTV mortgage on a $200,000 home. What is the loan amount?
- An Iowa commercial lease has an annual base rent of $18 per square foot for 2,500 square feet. What is the monthly rent?
Practice More Iowa Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Iowa Quiz →