Real Estate Math
A Massachusetts property purchased 8 years ago for $320,000 has increased in value by 35%. What is the current market value?
A$432,000✓ Correct
B$355,000
C$420,000
D$412,000
Explanation
Current value = $320,000 × (1 + 0.35) = $320,000 × 1.
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
AmortizationThe 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.
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