Qr

[Mstoothlady2012]

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What is the present price per square foot for a 2000 sq ft apartment, that has appreciated 15% in value from the day it was purchased at $550,000?

What do they exactly mean by "appreciated"? The price has gone up by 15% or gone down or something else?

Thanks 🙂

 

[harrygt]

What is the present price per square foot for a 2000 sq ft apartment, that has appreciated 15% in value from the day it was purchased at $550,000?

What do they exactly mean by "appreciated"? The price has gone up by 15% or gone down or something else?

Thanks 🙂

I assume it has gone up, as the word "appreciation" has a positive tone.😉

 

[osimsDDS]

What is the present price per square foot for a 2000 sq ft apartment, that has appreciated 15% in value from the day it was purchased at $550,000?

What do they exactly mean by "appreciated"? The price has gone up by 15% or gone down or something else?

Thanks 🙂

Appreciation on a property means that it has gone up, you need some real estate knowledge haha
Conversely, depreciation means its gone down...you lose money

 

[rdhdds1]

Appreciation is an increase in value based on market conditions. a 15% increase on 550,000 would be 82,500 for a grand total value of 632,500. Now figure out the price per sq ft. 632,500/2000= 316.25 per sq ft.

This is based on a year of appreciation. Any more than a year or less than a year then divide the amount of appreciation (82,500) by the number of days and add that to the 550,000 and divide it out the same way to find out price per sq ft.

Example:
17 months of appreciation would be 12 months at 82,500 and 5 months at 34375 for a grand total appreciation of 116,875.

Example:
7 months of appreciation would yield 48125

 

[Mstoothlady2012]

yea that's what I thought too! So i was adding its 15% value but I was getting the answer that wasn't one of the choices. I guess I was doing the math wrong in all the rush. Thanks every1

 

[DRHOYA]

yea that's what I thought too! So i was adding its 15% value but I was getting the answer that wasn't one of the choices. I guess I was doing the math wrong in all the rush. Thanks every1

Oh boy, I remember this one from achiever. I got it wrong when I did the test, but after reviewing it, I learned that since its an increase of 15%, they mulitplied 550,000 x 1.15. Then divid that number by 2000 to get the price per sq/ft. It doesn't seem that hard, but the wording is tricky.

 

[Mstoothlady2012]

yea i understood the question but I was doing the math wrong. I guess I was seeing 1 extra zero in there so my answer wasn't matching up I usually like to touch the screen and count the zeros so i don't miss/add any. But I am trying not to do that since you can't do that on the test day 🙁

 

[Orgodox]

Same thing here, sometimes its hard for me to tell how many zeros I hope it wont be bad on the test.