Real Estate Math

A building has an economic life of 40 years and is 10 years old. Using straight-line depreciation, what percentage of value has been depreciated?

A10%
B25%✓ Correct
C40%
D75%

Explanation

Straight-line depreciation: 10 years / 40 years = 25% depreciated. The remaining economic life is 30 years (75% of value remaining).

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