Real Estate Math
A Louisiana building has a reproduction cost new of $580,000, accrued depreciation of $87,000, and the land value is $95,000. Using the cost approach, the indicated value is:
A$588,000✓ Correct
B$579,000
C$493,000
D$668,000
Explanation
Indicated value (cost approach) = Reproduction Cost New − Accrued Depreciation + Land Value = $580,000 − $87,000 + $95,000 = $588,000.
Related Louisiana Real Estate Math Questions
- A seller nets $195,000 after paying a 6% commission. What was the original sales price?
- A Louisiana property has an assessed value of $120,000 (after the $7,500 homestead exemption). The parish millage rate is 80 mills. What are the annual property taxes?
- A broker charges a 6% commission on a $350,000 sale. The listing agent receives 60% of the listing broker's share, which is 50% of the total commission. How much does the listing agent earn?
- A Louisiana property sold for $198,500. If this represents 115% of what the owner paid 5 years ago, what was the original purchase price?
- A Louisiana investment property has annual gross income of $36,000, vacancy and credit losses of 5%, and operating expenses of $12,000. What is the net operating income (NOI)?
- A rental property generates $2,500 per month in gross rent. The GRM in the market is 120. What is the estimated property value?
- A Louisiana investor bought a property for $310,000 and sold it 4 years later for $378,000 after making $18,000 in improvements. What was the net appreciation on the investment (excluding selling costs)?
- A rectangular lot is 75 feet wide and 120 feet deep. At $8 per square foot, what is the value of the lot?
Practice More Louisiana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Louisiana Quiz →