Real Estate Math
A Vermont property depreciates at a rate of 2.5% per year. If the building component is valued at $240,000, what is the annual depreciation?
A$4,800
B$6,000✓ Correct
C$8,000
D$12,000
Explanation
Annual depreciation = Building value × Depreciation rate = $240,000 × 2.5% = $6,000. To solve this, multiply the relevant values: $240,000, at 2.5%.. The correct answer is $6,000.. This is a common calculation on the Vermont real estate exam.
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