Real Estate Math
A Pennsylvania tenant pays $2,400/month rent. The lease specifies a 3% annual increase. What is the rent in month 13 (year 2)?
A$2,400
B$2,472✓ Correct
C$2,484
D$2,500
Explanation
Year 2 rent = $2,400 × 1.03 = $2,472. The 3% increase applies to the base rent, resulting in $72 more per month beginning in the second year. Annual CPI or percentage rent escalations are common in Pennsylvania commercial and residential leases.
Related Pennsylvania Real Estate Math Questions
- A buyer makes a 15% down payment on a $280,000 home. What is the loan amount and what is the LTV ratio?
- A buyer obtains a Pennsylvania mortgage for $280,000 at 6.5% annual interest. What is the first month's interest payment?
- A Pennsylvania buyer obtains a $300,000 mortgage at 6.5% annual interest. What is the approximate monthly interest for the first month?
- An Allentown duplex has annual gross rent of $28,800, operating expenses of $9,500, and a mortgage payment of $12,000/year. What is the cash flow before taxes?
- A Pennsylvania seller paid $275,000 for a home 5 years ago and sells it today for $342,000. What is the percentage gain?
- A property has a net operating income of $45,000 per year. Using a capitalization rate of 7.5%, what is the estimated value?
- A property in Lehigh County has a market value of $350,000, an assessment ratio of 100%, and a millage rate of 18.5 mills. What is the annual tax?
- A Pennsylvania salesperson earns a 60% split of a 5% commission on a $380,000 sale. How much does the salesperson earn?
Practice More Pennsylvania Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Pennsylvania Quiz →