What is the exam-ready answer?
| Roadmap post | 241 of 500 |
|---|---|
| Official syllabus topic | Valuation and Real Estate Calculations: appreciation, depreciation, and percentage relationships |
| Official PSI area | Real Estate Calculations |
| Published weight | 7% of the 100-question national portion |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 2026 |
| Content checked through | August 2, 2026 |
The Rule
PSI publishes a weight for the complete official area, not a guaranteed count for this individual calculation. Follow the stated facts, units, time basis, and rounding instruction.
Formula and variables
| Symbol or term | Meaning |
|---|---|
| Original value | The starting amount and denominator for percentage change |
| New value | The amount after the stated increase or decrease |
| Change | New value minus original value, positive for gain and negative for loss |
Step-by-step method
- Identify the original value before calculating any percentage.
- Find the dollar change by subtracting original from new when both are given.
- Divide the change by the original value to find the percentage change.
- For a new value, multiply the original by one plus the rate for appreciation or one minus the rate for depreciation.
- Apply the factor repeatedly only if the question clearly describes compounding over multiple periods.
Georgia-specific distinction
Worked examples
Example 1: Find appreciation percentage
Scenario. A property rises from $280,000 to $322,000.
- Change = $322,000 - $280,000 = $42,000.
- Percent change = $42,000 / $280,000 = 0.15.
- 0.15 = 15%.
Answer. The property appreciated 15%.
Reasonableness check. Ten percent is $28,000 and five percent is $14,000, totaling the $42,000 increase.
Example 2: Successive annual depreciation
Scenario. A value of $500,000 declines 8% in each of two successive years.
- Year 1 value = $500,000 x 0.92 = $460,000.
- Year 2 value = $460,000 x 0.92 = $423,200.
Answer. The ending value is $423,200, a total decline of 15.36%, not 16%.
Reasonableness check. The second 8% is applied to the smaller $460,000 balance, so two declines do not simply add when compounded.
Common exam traps
- Dividing the change by the new value instead of the original value
- Adding percentages across periods when the problem describes compounding
- Confusing market depreciation with tax depreciation
- Subtracting an appreciation rate instead of adding it to the one-factor
Original practice questions with detailed explanations
These original instructional questions map to the July 1, 2026 PSI outline. They are not copied from PSI or any live examination. Write the setup before opening the explanation.
Question 1A property increases from $240,000 to $270,000. What is the percentage increase?
- A. 11.1%
- B. 12.5%
- C. 30%
- D. 88.9%
Show answer and explanation →
Answer: B. 12.5%
The $30,000 change is divided by the $240,000 original value: 12.5%.
Question 2A $360,000 property depreciates 10% once. What is the new value?
- A. $324,000
- B. $326,400
- C. $360,000
- D. $396,000
Show answer and explanation →
Answer: A. $324,000
$360,000 x 0.90 = $324,000.
Question 3Which amount is the denominator when finding percentage appreciation?
- A. New value
- B. Original value
- C. Dollar change
- D. Loan balance
Show answer and explanation →
Answer: B. Original value
Percentage change measures the gain or loss relative to the original amount.
Mastery tracking
Mark this calculation mastered only when every statement is true.
- I identify the original value as the percentage base.
- I can solve for the dollar change, rate, original value, or new value.
- I distinguish one-time change from compounded change.
- I separate market depreciation from tax depreciation.
- I can reverse-check the result by applying the rate to the original value.
Recommended next lesson
Continue with Georgia Real Estate Transfer-Tax Calculation. Apply a state-specific taxable base and statutory rounding rule.
Return to the complete calculation hub, formula sheet, or mixed math drill.