Real Estate Math
Depreciation in the cost approach on a 20-year-old building with a 50-year economic life using straight-line method is:
A20%
B40%✓ Correct
C50%
D60%
Explanation
Straight-line depreciation rate = Age ÷ Economic Life = 20 ÷ 50 = 40%. The cost approach deducts this percentage from the reproduction/replacement cost to estimate the depreciated cost of the improvements.
Related Pennsylvania Real Estate Math Questions
- A Pennsylvania home's assessed value is $180,000 and the assessment ratio is 80%. What is the estimated market value?
- A Lancaster County, PA, farm of 85 acres sells for $1.275 million. What is the price per acre?
- A salesperson's annual income from commissions is $95,000. If their average commission is $7,500 per transaction, how many transactions did they complete?
- A property sells for $410,000. The buyer finances 90% and pays a 0.9% PMI rate. What is the annual PMI cost?
- A Pennsylvania buyer pays 1.5 points to buy down their 7% rate. On a $240,000 loan, what is the cost of the points?
- A Pennsylvania broker charges 6% commission on a sale. After paying a 50/50 split to the cooperating buyer's broker, each side earns how much on a $380,000 sale?
- A Pennsylvania investor wants a 12% return on their $150,000 investment. What annual NOI is required to meet this return target?
- A buyer pays 2.5 discount points on a $200,000 mortgage. How much does the buyer pay in points?
Practice More Pennsylvania Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Pennsylvania Quiz →