Real Estate Math
A Vermont home appreciated 8% per year for 3 years. If the original price was $250,000, what is the approximate current value?
A$310,000
B$314,928✓ Correct
C$315,000
D$260,000
Explanation
Year 1: $250,000 × 1.08 = $270,000. Year 2: $270,000 × 1.08 = $291,600. Year 3: $291,600 × 1.08 = $314,928. Compounding produces $314,928 after 3 years at 8% annual appreciation.
Related Vermont Real Estate Math Questions
- A Vermont property sold for $265,000. The buyer paid a PTT. What was the total PTT owed?
- A Vermont commercial property has annual gross rents of $180,000, a vacancy rate of 6%, and operating expenses equal to 35% of effective gross income. What is the NOI?
- A Vermont buyer's mortgage payment is $1,800/month. Their gross monthly income is $6,000. What is their housing expense ratio?
- A Vermont investor paid $400,000 for a rental property and generates $32,000 net annual income. What is the capitalization rate (cap rate)?
- A Vermont buyer makes a $450,000 purchase with 25% down. What is the down payment and loan amount?
- A Vermont home sells for $320,000. The property was purchased 3 years ago for $256,000. What was the total dollar appreciation?
- A Vermont commercial property produces $90,000 in annual gross income with a 30% vacancy and expense ratio. At a 6% capitalization rate, what is its value?
- A Vermont real estate investment produces a cash-on-cash return of 8% on an equity investment of $75,000. What is the annual pre-tax cash flow?
Practice More Vermont Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Vermont Quiz →