Real Estate Math
A home was purchased for $210,000. After 3 years, it appreciated at 4% per year compounded. What is the approximate value after 3 years?
A$235,200
B$236,196✓ Correct
C$252,000
D$245,000
Explanation
Year 1: $210,000 x 1.04 = $218,400.
People Also Study
Related Oklahoma Questions
- An investor buys a rental home for $180,000. After one year, appreciation has increased the value by 4%. What is the new value?Real Estate Math
- A home in Moore, Oklahoma is purchased for $224,900 and 3 years later sells for $262,000. What is the total appreciation?Real Estate Math
- A home in Edmond, Oklahoma was purchased for $320,000 and sold three years later for $368,000. What was the percentage increase in value?Real Estate Math
- A property's net operating income is $36,000 per year. If the cap rate is 8%, what is the estimated value?Real Estate Math
Key Terms to Know
Amortization
The gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Study This Topic
Practice More Oklahoma Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Oklahoma Quiz →