Real Estate Math
A Montana investment property was purchased for $400,000 and sold 5 years later for $480,000. What is the percentage appreciation over the holding period?
A15%
B18%
C20%✓ Correct
D25%
Explanation
Percentage appreciation = (Sale Price − Purchase Price) ÷ Purchase Price × 100 = ($480,000 − $400,000) ÷ $400,000 × 100 = $80,000 ÷ $400,000 × 100 = 20%.
Related Montana Real Estate Math Questions
- A buyer takes out a $250,000 mortgage at 6% interest for 30 years. The monthly payment for principal and interest is approximately $1,499. How much of the first payment goes to interest?
- A Montana real estate investor uses a 1031 exchange to defer capital gains taxes. They sell a property for $450,000 with an adjusted basis of $200,000. What capital gain would be deferred?
- A seller wants to net $200,000 after paying a 6% commission and $4,000 in other closing costs. What must the property sell for (approximately)?
- A Montana broker manages a property with monthly gross rents of $6,800, vacancy of 5%, operating expenses of $2,200/month, and debt service of $2,100/month. What is the monthly cash flow after debt service?
- A Montana buyer assumes a $150,000 mortgage with 20 years remaining at 5.5% interest. The current monthly payment is $1,032. How much total will the buyer pay over the remaining 20 years?
- A buyer's agent receives 3% of the sale price on a $412,000 transaction. After splitting with the broker (70/30 split in the agent's favor), how much does the agent earn?
- A Montana investor bought a commercial property for $500,000 and depreciates the improvements (valued at $400,000) over 39 years for tax purposes. What is the annual depreciation deduction?
- A Montana property has a taxable value of $45,000 and the local mill levy is 200 mills. What is the annual property tax?
Practice More Montana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Montana Quiz →