A house sold for $450,000, which was 2% less than its original cost. What was the original cost?
Correct Answer
B) $459,183.67
The $450,000 sale price is the figure that has already been reduced, so it equals 100% - 2% = 98% of the original cost. Divide rather than multiply: $450,000 / 0.98 = $459,183.67. Check it forward, since 2% of $459,183.67 is $9,183.67 and $459,183.67 - $9,183.67 = $450,000.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
Transfer tax is a tax imposed on the transfer of real property ownership, typically calculated based on the sale price and paid at closing. It is commonly expressed as a rate per $100, $500, or $1,000 of the sale price.
Annual interest is the total amount of interest charged on a loan or investment over a year.
Area calculation involves determining the square footage or acreage of a property using geometric formulas. Key conversions: 1 acre = 43,560 square feet, 1 mile = 5,280 feet, 1 section = 640 acres.
More Real Estate Math Questions
A county charges $40 to record the first page of a deed and $7 for each additional page. If a deed is 3 pages long, what is the recording fee?
A property sells for $300,000 with a 6% commission split equally between the listing broker and the selling broker. The listing agent receives 60% of the listing broker's share. How much does the listing agent earn?
A buyer is purchasing a property for $450,000 with an 80% LTV loan. Buyer closing costs are $9,500, the earnest money deposit is $10,000, and the seller has agreed to a $5,000 closing cost credit. How much cash must the buyer bring to closing?
An individual residential condominium in New York City sells for $800,000. What combined New York State transfer tax and NYC RPTT is due, before any contractual allocation between the parties?
$285,000 sale, 6%:
- → A transfer tax is charged at $1.00 per $500 of sale price (rounded up to the nearest $500). If the property sells for $312,000, what is the transfer tax?
- → Annual property taxes of $8,400 are NOT yet paid. Closing is March 16 with seller owning the day of closing (360-day year, 30-day months). How much is the seller's prorated tax debit?
- → A 6% commission is established. The house sells for $2,800,000. What is the commission?
- → A lot purchased 25 years ago for $40,000 has appreciated 45% total. What is it worth today?
- → An investor borrows $200,000 at 5.5 percent annual interest, with monthly payments of $1,135.58. After the first monthly payment, how much of the payment goes toward principal?
- → A lot is 100 feet × 150 feet. How many square feet is the lot?
- → A seller closes on a property for $410,000. The commission is 6%, other seller closing costs are $5,500, and the existing mortgage payoff is $190,000. What are the seller's net proceeds before any tax effects?
- → A seller prepaid annual taxes of $7,200 on January 1. Closing occurs on April 1 (seller owns through March 31). Using a 360-day year, how much does the buyer owe the seller as a tax proration credit?
- → Gross income $60,000, expenses $22,000. NOI:
- → A property has an assessed value of $150,000 and a tax rate of 22 mills. What is the annual property tax?
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