Real Estate Math
A Missouri property earns $2,800/month in rent. The owner wants a 9% return. What is the maximum purchase price justified?
A$300,000
B$326,667
C$373,333✓ Correct
D$280,000
Explanation
Annual rent = $2,800 × 12 = $33,600. Value = $33,600 ÷ 0.09 = $373,333. To solve this, multiply the relevant values: $2,800 at 9%.. The correct answer is $373,333.. This is a common calculation on the Missouri real estate exam.
Related Missouri Real Estate Math Questions
- A Missouri seller wants to net $240,000. Agent commission is 6%, closing costs are $3,000. What must the home sell for?
- A Missouri home's annual property taxes are $5,400. If the tax rate is $7.50 per $100 assessed value and the assessment ratio is 19%, what is the market value?
- A Missouri property has an NOI of $24,000 and a cap rate of 8%. What is the estimated value using income capitalization?
- A Missouri property's market value is $350,000. Commercial assessment ratio is 32%. The assessed value is:
- A Missouri property owner bought a home for $220,000 and later sold it for $285,000. What was the percentage gain?
- A Missouri apartment building has 10 units renting at $850/month. Annual vacancy is 5%. What is the annual effective gross income?
- A Missouri property worth $500,000 has an NOI of $35,000. What is the cap rate?
- 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?
Practice More Missouri Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Missouri Quiz →