Certified Residential Appraiser Practice Exam

In appraisals, how is a 7% rate expressed as a decimal?

1. 0.007

2. 0.07

3. 0.7

4. 1.07

The correct answer is: 0.07

In appraisals and mathematics, percentages are converted to decimals by dividing the percentage value by 100. A percentage represents a part out of a hundred, so to express 7% as a decimal, you take 7 and divide it by 100. This calculation results in 0.07. Therefore, 7% is correctly expressed as 0.07 in decimal form. The other options do not accurately represent the conversion from the percentage. For example, 0.007 would represent 0.7%, which is much lower than 7%. The value 0.7 represents 70%, again significantly higher than 7%. Lastly, 1.07 would indicate 107%, which is also incorrect in this context. Thus, the only option that correctly converts 7% into decimal form is 0.07.