Market prices have increased at a simple, non-compounded rate of 3% per month. A comparable sold at a cash-equivalent price of $415,000 exactly 1 month before the effective date, and no other adjustments apply. What is the time-adjusted price, to the nearest dollar?
Correct Answer
C) $427,450
415000×(1+0.03×1)=427450. Common errors: adjusting downward instead of upward gives $402,550; reporting only the adjustment gives $12,450; misplacing the decimal in the 3% rate gives $539,500.
Why This Is the Correct Answer
415000×(1+0.03×1)=427450. Common errors: adjusting downward instead of upward gives $402,550; reporting only the adjustment gives $12,450; misplacing the decimal in the 3% rate gives $539,500.
More Sales Comparison Questions
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Previous Question
A multiple regression of 14 sales of two-story homes in a suburban subdivision uses GLA, bedroom count and bathroom count. The GLA coefficient is +$96 per square foot and the bedroom coefficient is −$9,400. In these sales, the homes with more bedrooms are nearly always the larger homes. The subject has four bedrooms and Comparable 2 has three. What is the best response to the bedroom result?
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A grid's final indications span $380,000 to $460,000 — a 21% spread. What is the appropriate response to the width of the range?