Property Valuation
A New Mexico appraiser uses the 'age-life method' to estimate depreciation. If a building has an effective age of 15 years and a total economic life of 50 years, the depreciation percentage is:
A15%
B25%
C30%✓ Correct
D50%
Explanation
Age-life depreciation = Effective Age / Total Economic Life = 15 / 50 = 0.30 = 30%. Appraisers in New Mexico use standardized methods to estimate property value for lending and sales.. The correct answer is 30%.
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