Real Estate Math
A Missouri home appreciates 3.5% annually. Current value is $200,000. What is it worth in 3 years?
A$221,718✓ Correct
B$220,000
C$221,000
D$223,000
Explanation
Year 1: $200,000 × 1.035 = $207,000.
People Also Study
Related Missouri Questions
- A Missouri property appreciates at 4% per year. If it's worth $180,000 today, what will it be worth in 2 years?Real Estate Math
- A Missouri home sells for $210,000. Property taxes are $3,780 annually. The tax rate per $100 of assessed value is $10.50. What is the assessed value?Real Estate Math
- A Missouri home was purchased for $150,000 five years ago and now sells for $187,500. What is the percentage increase in value?Real Estate Math
- A Missouri home's replacement cost new is $260,000. It has an effective age of 15 years and an economic life of 60 years. Using the age-life method, what is the depreciated value of the improvements?Real Estate Math
- 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:Property Valuation
- A Missouri home has a replacement cost new of $220,000, total depreciation of 25%, and land value of $50,000. What is the cost approach value?Property Valuation
- An appraiser determines a Missouri commercial building has a remaining economic life of 25 years. Using straight-line depreciation with a total economic life of 50 years, the depreciation rate per year is:Property Valuation
Key Terms to Know
Amortization
The 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.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Study This Topic
Practice More Missouri Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Missouri Quiz →