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Norma-Jean [14]
3 years ago
15

Replacement costs have been estimated as $350,000 for a property with a 70-year economic life. The current effective age of the

property is 15 years. The value of the land is estimated $55,000. What is the estimated market value of the property using the cost approach?
Business
1 answer:
tiny-mole [99]3 years ago
3 0

Answer: The estimated market value of the property using the cost approach is $330000

Explanation: The first step is to determine the value of the reproduction, which is equal to $ 350000.

Then we must subtract its accumulated depreciation, which is calculated as follows: ( (350000 x 15) / 70 ) = $ 75000.

350000 - 75000 = 275000

And last step we must add the estimated value of the site that is $ 55000.

275000 + 55000 = $ 330000 is the value estimated by the cost approach.

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4 years ago
Jay's new loan to purchase a property includes the seller's existing mortgage. What type of loan is this
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The type of loan that this is known to represent is what is referred to as the wraparound mortgage loan.

<h3>What is the wraparound mortgage loan?</h3>

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This type of loan is beneficial to a person given that they would be able to get a system of loan that may not have been possible before.

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2 years ago
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ira [324]

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