Question

3) A comparable property sold 15 months ago for $105,000. If the appropriate adjustment for market conditions is 0.25% per month (without compounding), what would be the adjusted price of the comparable property?

Answer 1

Answer:

$108,937.50

Explanation:

Data provided in the question

Time period = 15 months ago

Sale value of the property = $105,000

Per month rate = 0.25%

So by considering the above information, the adjusted price of the comparable property without compounding is

= Sale value of the property × (1 + (per month rate × time period))

= $105,000 × 1.0375

= $108,937.50