Property Valuation

A Missouri appraiser uses a cost approach on a 20-year-old home with an economic life of 50 years. The percentage depreciation using age-life method is:

A20%
B40%✓ Correct
C60%
D80%

Explanation

Age-life depreciation = Effective age ÷ Economic life = 20 ÷ 50 = 40%. Appraisers in Missouri use standardized methods to estimate property value for lending and sales..

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