Real Estate Math
A Massachusetts property sold for $720,000 in 2020 and $828,000 in 2025. What is the annualized appreciation rate over 5 years?
A3%✓ Correct
B2.72%
C5%
D4%
Explanation
Total increase = ($828,000 − $720,000) ÷ $720,000 = $108,000 ÷ $720,000 = 15% over 5 years. Annualized ≈ 15% ÷ 5 = 3% per year (simple annualization).
Related Massachusetts Real Estate Math Questions
- A Massachusetts property sells for $830,000. The deed excise tax rate is $4.56 per $1,000. What is the excise tax?
- A Massachusetts commercial property has monthly gross rent of $12,500. Annual operating expenses are $54,000. If the cap rate is 6.5%, what is the property's value?
- A property is assessed at $412,000. The town tax rate is $11.85 per $1,000 of assessed value. What are the quarterly property tax payments?
- A Massachusetts broker earns a 5.5% commission on the sale of a $740,000 property. If the listing and selling sides split the commission equally, how much does each side receive?
- A Massachusetts investor requires a 9% return on a $1,350,000 property. What minimum annual NOI is needed to meet this requirement?
- A Massachusetts property is listed at $475,000. After a 6% price reduction, the buyer also negotiates an additional $5,000 credit at closing. What is the net effective sale price?
- A broker lists a property for $620,000. After a price reduction of 4%, the property sells. The commission is 5.5% of the actual sale price. What is the commission?
- A property sells for $475,000. The broker charges a 5.5% commission. What is the total commission?
Practice More Massachusetts Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Massachusetts Quiz →