Real Estate Math
A Michigan property's replacement cost is $280,000. The land is worth $45,000. The building has depreciated 30%. What is the property value using the cost approach?
A$196,000
B$241,000✓ Correct
C$236,000
D$245,000
Explanation
Depreciated building value = $280,000 x 0.70 = $196,000.
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