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A comparable property sold three months ago for $280,000. Prices in the area have increased 5% in the past six months. What is the indicated value of a similar property?

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Final answer:

The indicated value of a similar property after a 2.5% price increase over three months is $287,000, calculated from the original comparable property value of $280,000.

Step-by-step explanation:

The student is asking for the indicated value of a similar property based on the price increase over a certain time period. To find the indicated value, one would calculate the price increase first. Assuming that the 5% increase in housing prices happened uniformly over the past six months, we would apply a 2.5% increase for three months to find the current value of a property similar to the one that sold for $280,000. The calculation would be: $280,000 + ($280,000 × 0.025) = $280,000 + $7,000 = $287,000. Therefore, the indicated value of a similar property is $287,000.

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