Real Estate Math
A Vermont property was purchased for $275,000 and sold 5 years later for $340,000. Ignoring taxes and transaction costs, what is the approximate annual appreciation rate?
A3.5%
B4.2%
C4.4%✓ Correct
D5.1%
Explanation
Total appreciation = ($340,000 − $275,000) ÷ $275,000 = 23.6%. Annual rate (using compound interest: (340/275)^(1/5) − 1) = (1.2364)^0.20 − 1 = 1.0433 − 1 = 4.3% ≈ 4.4% per year.
Related Vermont Real Estate Math Questions
- A Vermont buyer's loan requires a 1-point origination fee on a $200,000 mortgage. How much will the buyer pay for this fee?
- A Vermont 6-unit apartment building sells for $780,000. Annual NOI is $54,600. What is the cap rate?
- Vermont's Land Gains Tax rate for land sold within 1 year of purchase is 80% of the gain. A buyer purchased land for $100,000 and sold it 8 months later for $150,000. What is the Land Gains Tax?
- A Vermont property sold for $265,000. The buyer paid a PTT. What was the total PTT owed?
- A Vermont property owner pays $3,200 in annual property taxes. If the tax rate is $1.60 per $100 of assessed value, what is the assessed value?
- A Vermont commercial lease has a 3% annual escalation clause on a base rent of $24,000/year. What will the annual rent be in year 2?
- A Vermont investment property generates $3,200/month gross rent. Annual expenses are $12,480. Using a 7% cap rate, what is the property value based on NOI?
- A Vermont seller nets $315,000 after paying a 5% commission on the sale. What was the sale price?
Practice More Vermont Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Vermont Quiz →