Real Estate Math
A property was purchased for $185,000 and sold 4 years later for $223,850. What was the annual rate of appreciation (simple interest method)?
A4.5%
B5.25%✓ Correct
C5.5%
D6.0%
Explanation
Total appreciation: $223,850 − $185,000 = $38,850. Percentage gain: $38,850 ÷ $185,000 = 21%. Annual rate (simple): 21% ÷ 4 years = 5.25% per year.
Related South Carolina Real Estate Math Questions
- A South Carolina seller owes $145,000 on their mortgage. The home sells for $225,000. Selling costs are 7% of the sales price. What are the seller's net proceeds?
- A South Carolina commercial tenant leases 2,500 sq ft at $20/sq ft/yr. What is the monthly rent?
- A South Carolina home sold for $198,000. The listing broker and buyer's broker each received 2.5% commission. What did each side receive?
- An investor purchases a duplex for $280,000. Each unit rents for $1,100/month. Annual operating expenses are $8,400. What is the annual net operating income (NOI) and cap rate?
- A South Carolina home sells for $362,500. What is the deed recording fee?
- A property management company charges 8% of collected rent. Monthly rents collected are $14,500. What is the monthly management fee?
- A South Carolina property's NOI is $42,000 per year. If the cap rate is 7%, what is the property's value?
- A South Carolina property's assessment is $168,000 (6% investment property ratio applied to fair market value). What is the fair market value?
Practice More South Carolina Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Carolina Quiz →