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Sales ComparisonMEDIUM16.4% of exam

A comparable sold 30 months ago for $255,000. Market conditions have risen 0.3% per month on a simple basis. What is the time-adjusted sale price?

Correct Answer

D) $277,950

Why this is correct: Calculation: 30 × 0.3% = 9%; $255,000 × 1.09 = $277,950. Why the other choices are wrong: $278,977 compounds monthly, which the stem did not describe; $255,000 leaves two and a half years of movement unrecognized; $232,050 applies the change downward in a rising market.

Answer Options
A
$278,977
B
$255,000
C
$232,050
D
$277,950

Why This Is the Correct Answer

Why this is correct: Calculation: 30 × 0.3% = 9%; $255,000 × 1.09 = $277,950. Why the other choices are wrong: $278,977 compounds monthly, which the stem did not describe; $255,000 leaves two and a half years of movement unrecognized; $232,050 applies the change downward in a rising market.

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