Real Estate Math
A building has a replacement cost of $800,000 and has experienced 15% physical depreciation. What is the depreciated value of the improvements?
A$640,000
B$660,000
C$680,000✓ Correct
D$720,000
Explanation
Depreciation = $800,000 × 0.15 = $120,000. Depreciated value = $800,000 − $120,000 = $680,000. To solve this, multiply the relevant values: $800,000 at 15%.. The correct answer is $680,000.. This is a common calculation on the New Jersey real estate exam.
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