CRE - Real Estate Calculations

a. 50000

Cindy purchased a lot for $40,000. She has been asked to build an apartment house with a projected income of $20,000 per year. Her accountant estimates all expenses, including proper management, repairs, etc., to be $12,000 per year. Cindy wants a 10% return on her investment. Which of the following is nearest to the amount she can afford to pay for the erection of the building? (a. 50000 b. 100000 c. 110000 d. 120000)

a. .67.

Converted to a decimal, 2/3% becomes: (a. .67. b. .83. c. 1.333. d. .75.)

a. 7980

Craig purchased a home for $82,500. He got a first trust deed from a bank for 80% of the purchase price and put up a cash deposit of $1,800. In a separate transaction, he sold a $9,600 trust deed for a 30% discount and applied the proceeds to the purchase price. If the seller will carry a second trust deed for the balance of the purchase price, what will be the amount of the second trust deed carried by the owner? (a. 7980 b. 8330 c. 6421 d. 5222)

c. 95

Dave financed a $120,000 home with an 80% first mortgage from his local credit union, a 10% second mortgage from the seller and a 10% down payment. The seller offered terms of 9.5% INTEREST ONLY on the second mortgage. What are Johnson's monthly payments on the second mortgage? (a. 146.92 b. 132.12 c. 95 d. 186.37)

c. 2560

Debbie paid $6.40 per square foot to purchase a rectangular lot contain 40,000 square feet. The lot was 400 feet deep. What was the cost per front foot? (a. 220 b. 640 c. 2560 d. 1010)

c. $2,135; $3,202

Dick purchased a home for $118,600 and arranges to finance the purchase with a 90% loan. The terms of the loan are 10.75% annual interest, a 2% loan fee, and a three point discount. What is the amount of the loan fee and the discount? (a. $1,913; $4,660 b. $1,335; $4,194 c. $2,135; $3,202 d. $1,201; $4,660)

a. 45'.

Dividing a one acre parcel of land into four equal sized rectangular lots parallel to each other and each measuring 240' in depth would give an approximate width of each lot equal to: (a. 45'. b. 726'. c. 182'. d. 84'.)

c. 740

Ed owns 80 acres of land that is 1/2 mile long by 1/4 mile wide. Ed asks Bill to clear 4 strips of land, each 50 feet wide for access to roads. One strip will run the length of the land and 3 strips will run the width of the land. If Bill charges $100 per acre of cleared land, he will receive approximately: (a. 222 b. 388 c. 740 d. 888)

b. 3050

Ed spends 24% of his gross monthly income on his house payment of $732. What is his gross monthly income? (a. 3200 b. 3050 c. 2750 d. 3000)

d. 132500

Frank just sold his house for 6% more than he paid for it. The selling price was $140,450. What was the original purchase price? (a. 120000 b. 124500 c. 130000 d. 132500)

d. $1,440; $360; $45

Frank purchased a home for $80,000. He financed the purchase with a 90% conventional fixed-rate loan. The loan fee charged by the lender was 2%. The private mortgage insurance company charged a .50% first-year premium and a .75% renewal premium. What was the loan fee? The first-year premium? The monthly renewal premium? (a. $1,782.75; $586.10; $17.90 b. $1,580; $505.60; $18.43 c. $1,975; $632; $23.04 d. $1,440; $360; $45)

a. 22000

Fred owns an apartment building with 40,000 square feet of floor space and wants to carpet 50% of the area. If the carpet costs $10.00 per square yard, the total cost of carpeting was most nearly: (a. 22000 b. 24000 c. 65000 d. 79000)

b. 25000

Fred owns an apartment building with 40,000 square feet of living space and wants to carpet 75% of the area. If the carpet costs $7.50 per square yard, the total cost of carpeting was most nearly: (a. 10000 b. 25000 c. 4000 d. 33300)

d. 1804.44

Fred pays $16,240 for a home. If it costs 10% to sell his home before he could sell it at a profit, how much would it have to appreciate? (a. 2078.18 b. 1 c. 0.34 d. 1804.44)

c. 100,000 cubic feet

George is planning to build a warehouse 50 feet wide by 200 feet long. The walls will be 10 feet high and the building will have a flat roof. How many cubic feet of space will George have when the warehouse is completed? (a. 4,200 cubic feet b. 8,400 cubic feet c. 100,000 cubic feet d. 306,000 cubic feet)

c. 1066

Harry sold two parcels of land for $9,430, which was 15% more than their cost four years ago. While Harry owned the parcels, he paid taxes each year at a rate of $8.00 per $100 on an assessed value of 25% of the purchase price. Assuming an annual loss of 5% imputed interest on Harry's original investment as an expense, how much did Harry lose on the transaction? (a. 650 b. 885 c. 1066 d. None of the above, because Harry made money on the transaction)

c. 5 years

How long will it take $6,000 to earn $2,400 at 8% interest? (a. 6 years b. 5 and a half years c. 5 years d. None of the above)

c. 20

How many acres are in a lot that measures 660 feet x 1,320 feet? (a. 5 b. 10 c. 20 d. 40)

c. 20

How many acres are in a lot that measures 660' x 1,320'? (a. 5 b. 10 c. 20 d. 40)

b. 23

How many acres are in a lot that measures 750' x 1,320'? (a. 15 b. 23 c. 20 d. 40)

d. 640

How many acres are in one section? (a. 260 b. 360 c. 420 d. 640)

d. None of the above

How many acres are in the E 1/2 of the NW 1/4 of the SE 1/4 of the NW 1/4 of Section 38? (a. 1-1/4 acres b. 2-1/2 acres c. 1/2 acre d. None of the above)

a. 280

How many acres are in the NW 1/4 of the SE 1/4 of Section 10 and the SE 1/4 of Section 3 and the N 1/2 of the NE 1/4 of Section 16? (a. 280 b. 160 c. 240 d. 320)

c. 240

How many acres are in the S 1/2 of the SE 1/4 of Section 5 and the N 1/2 of the NW 1/4 of Section 13 and the N 1/2 of the NE 1/4 of Section 32? (a. 80 b. 160 c. 240 d. 320)

a. 280

How many acres are in the S 1/4 of the SE 1/4 of Section 10 and the N 1/2 of the NW 1/2 of Section 3 and the N 1/2 of the NE 1/4 of Section 16? (a. 280 b. 160 c. 240 d. 320)

d. 160

How many acres are in the following described area: the NW 1/2 of the NE 1/2 of section 5? (a. 110 b. 120 c. 140 d. 160)

d. 40

How many acres are in the following described area: the NW 1/4 of the NE 1/4 of section 5. (a. 10 b. 20 c. 30 d. 40)

d. 160

How many acres are in the following described area: the W 1/2 of the N 1/2 of section 5? (a. 110 b. 120 c. 140 d. 160)

d. 40

How many acres are in the following described area? The NW 1/4 of the NE 1/4 of section 5? (a. 10 b. 20 c. 30 d. 40)

d. 640

How many acres in one section? (a. 260 b. 360 c. 420 d. 640)

d. 8

How many board feet of lumber can be obtained from a piece 8" x 12" x 12"? (a. 3 b. 6 c. 7 d. 8)

d. 21120

How many linear feet of fencing is required to fence one standard section of land? (a. 10560 b. 13200 c. 20560 d. 21120)

d. 8

How many parcels of land, each measuring 50' by 100', could be created from an acre of land? (a. 1 b. 4 c. 7 d. 8)

c. 2,001 square feet

How many square feet are there in a building, rectangular in shape that is 29 feet wide and 69 feet long? (a. 2,001 feet b. 2,368 square feet c. 2,001 square feet d. none of these)

b. 1,099 square feet

How many square feet of cement would be needed for a 7-foot wide continual sidewalk around the OUTSIDE EDGE of a 60 foot by 90 foot corner lot? Side A is 60' long and Side B is 90' long. (a. 1,050 square feet b. 1,099 square feet c. 420 square feet d. 630 square feet)

a. 1

How many square miles does a section contain? (a. 1 b. 6 c. 36 d. 180)

b. 189 square yards.

How many square yards of linoleum would be needed to cover a floor that's 1,700 square feet? Round your answer up to the next full square yard. (a. 134 square yards. b. 189 square yards. c. 534 square yards. d. none of these.)

c. 3000

How much interest would a $6,000 loan earn in five years at 10% simple interest? (a. 500 b. 2500 c. 3000 d. None of the above)

b. 25000

How much money must be loaned to receive $15,000 if the money is loaned for five years at 12% interest? (a. 109000 b. 25000 c. 15750 d. None of the above)

b. 25000

How much money would have to be invested at 6% interest to provide an income of $125.00 per month? (a. 9000 b. 25000 c. 20000 d. 50000)

d. 21000

How much money would have to be invested at 8% interest to provide an income of $140.00 per month? (a. 9000 b. 25000 c. 20000 d. 21000)

a. 18229.86

If 1.86 acres are for sale at 22 1/2 cents per square foot, what is the asking price? (a. 18229.86 b. 18267.53 c. 18983.16 d. 19096.16)

a. 29947.5

If 2.50 acres are for sale at 27-1/2 cents per square foot, what is the asking price? (a. 29947.5 b. 11979 c. 18983.16 d. 19096.16)

c. P = I divided by R x T

If I = PRT, what does P represent? (a. P = R divided by T x I b. P = T divided by I x R c. P = I divided by R x T d. P = I divided by R)

b. -3000

If a comparable has landscape lighting valued at $3,000, and the subject property does not, the sales price of the comparable is adjusted by: (a. 3000 b. -3000 c. -1000 d. can't compute on the basis of the information given.)

c. 0.02

If a person borrowed $10,000 on a straight note and paid $50 interest every 90 days, what would be the interest rate? (a. 0.1 b. 0.08 c. 0.02 d. 0.066)

b. 0.08

If a person borrowed $5,000 on a straight note and paid $100 interest every 90 days, what would be the interest rate? (a. 0.1 b. 0.08 c. 0.05 d. 0.066)

b. 1345

If a property sold for $17,000, with a first trust deed assumed at $14,400, deducting commission of 6% and costs at $235, how much would the seller receive from escrow? (a. 15980 b. 1345 c. 15745 d. 1580)

d. 308736

If a property with a $2,400 gross monthly income sold at an annual GRM (gross rent multiplier) of 10.72, what did the property sell for? (a. 250650 b. 280000 c. 295640 d. 308736)

b. 2025

If a salesman is to receive 25% of his brokers 6% commission, how much would he receive on a parcel with 900 front feet that sold for $150 a front foot? (a. 8100 b. 2025 c. 1920 d. 810)

c. 1920

If a salesman sold a parcel with 800 front feet at $100 a front foot, and he was to receive 40% of his broker's 6% commission, he would receive: (a. 3200 b. 2680 c. 1920 d. 810)

c. 1920

If a salesperson sold a parcel with 800 front feet at $100 a front foot, and he was to receive 40% of his broker's 6% commission, he would receive: (a. 3200 b. 2680 c. 1920 d. 810)

a. 40

If an acre of land is divided into 4 lots of equal size and the depth of each lot is 250', the front foot measurement of each lot is closest to which of the following figures: (a. 40 b. 100 c. 63 d. 174)

b. 150000

If an income property is valued at $250,000 using a 6% capitalization rate, how much would an investor pay for the property if he demanded a 10% capitalization rate? (a. 225000 b. 150000 c. 300000 d. 500000)

a. 13%.

If building costs increase by 15%, the purchasing power of the investment dollar decreases by: (a. 13%. b. 20%. c. 25%. d. 33-1/3%.)

a. 1500

If the subject property has built in appliances valued at $1,500 and a comparable property does not, the sales price of the comparable is adjusted by: (a. 1500 b. -1500 c. -875 d. can't compute on the basis of the information given)

a. 55'

If you were to divide a one acre parcel of land into four equal sized rectangular lots, parallel to each other and each measuring 200' in depth, what is the approximate width of each lot? (a. 55' b. 63' c. 212' d. 84')

d. 18000

In order to be able to earn $75.00 per month from an investment that yields a 5% return, you must invest: (a. 2500 b. 9000 c. 15000 d. 18000)

d. 18000

In order to be able to earn $90.00 per month from an investment that yields a 6% return, how much should you invest? (a. 2500 b. 9000 c. 15000 d. 18000)

b. 50000

In order to earn $250 per month, the amount an investor would have to invest at 6% is: (a. 15000 b. 50000 c. 22000 d. 30000)

d. 15600

In order to earn $65.00 per month from an investment that yields a 5% return, you must invest: (a. 2500 b. 9000 c. 15000 d. 15600)

d. None of the above

In the E 1/2 of the NW 1/4 of the SE 1/4 of the NW 1/4 of Section 38 is how many acres? (a. 1-1/4 acres b. 2-1/2 acres c. 1/2 acre d. None of the above)

a. 1955

Inventory in a store cost $9,200 net. It was sold for 25% profit, but 15% of the gross profit was lost due to bad credit risks over a period of one year. How much profit did the store owner make that year? (a. 1955 b. 920 c. 345 d. None of the above)

a. 1955

Inventory in a store cost $9,200 net. It was sold for 25% profit. However, 15% of the gross profit was lost due to bad credit risks over a period of one year. How much profit did the store owner make that year? (a. 1955 b. 920 c. 345 d. None of the above)

a. 1955

Inventory in a store cost $9,200 net. It was sold for 25% profit; however, 15% of the gross profit was lost due to bad credit risks over a period of one year. How much profit did the store owner make that year? (a. 1955 b. 920 c. 345 d. None of the above)

b. 1530

Inventory in a store costs $8,500 net. It was sold for 20% profit. However, 10% of the gross profit was lost due to bad credit risks over a period of one year. How much profit did the store owner make that year? (a. 1955 b. 1530 c. 345 d. none of the above)

d. None of the above

Inventory in a store costs $8,500 net. It was sold for 25% profit. However, 15% of the gross profit was lost due to bad credit risks over a period of one year. How much profit did the store owner make that year? (a. 1955 b. 920 c. 345 d. None of the above)

b. 187500

Investors want to build an apartment house which will have a gross income of $3,000 per month and annual expenses of $7,000. The investors require a 8% capitalization rate on the investment. If the improvements cost $175,000, how much can the investors pay for the land? (a. 24000 b. 187500 c. 150000 d. 200000)

c. 11250

It would cost $12,500 to reproduce an improvement today. The land is valued at $1,000. The improvement is 12 years old. The depreciation rate is 1-1/2%. Using the above facts, what is the depreciated value today? (a. 10250 b. 10750 c. 11250 d. None of the above)

c. 52500

Jane purchased a home for $150,000. She received a loan from the bank for 75% of the purchase price, payable at $1,600 per month including 10% interest. She then sold the home for $165,000 before she even made the first payment on the loan. What was her equity at the time of the sale? (a. 12000 b. 14750 c. 52500 d. 125000)

c. 822

Jane purchased a house for $100,000 with a down payment of 25% of the purchase price. The balance was financed on a 30-year amortized loan with interest at 8% per annum. The lender requires monthly impounds for property taxes of $1,000 per year and casualty insurance costing $788 for a three year policy. Assuming that the first monthly payment on the principal is $217, the total amount the buyer will have to pay the first month will be approximately: (a. 989 b. 1063 c. 822 d. 827)

c. 11250

Jay is the beneficiary on a trust deed. The annual interest rate is 8%. If in 5 years he has received $4,500 in interest, what is the principal amount of the loan? (a. 5460 b. 11050 c. 11250 d. 65000)

a. 20000

Jay sold his lot for $25,000. This selling price represented a 25% profit over what he had originally paid for it. What was the original price of the lot? (a. 20000 b. 19550 c. 27000 d. None of the above)

b. 2400

Jerry spends 25% of her gross monthly income on her apartment rent of $600. What is her gross monthly income? (a. 1500 b. 2400 c. 2000 d. 2420)

c. 0.5

Jill sold a house and carried back a promissory note for $13,340, secured by a 2nd trust deed. She then sold the note at close of escrow to an investor for $6,670. What was the amount of the discount? (a. 0.3 b. 0.32 c. 0.5 d. 0.4)

a. No return was received on the investment

Jim bought a second trust deed and note that had a face amount of $1,800 on which he was allowed a 20% discount. If he received payments of $120 per month, including 8% interest, for 1 year, what was his percentage of return on his investment? (a. No return was received on the investment b. 0.29 c. 0.31 d. 36-1/4%)

a. $1,750.02.

Jim made an agreement to sell his house on December 1, 2005. Escrow closed January 1, 2006 and the taxes for the fiscal year of 2005-06 were unpaid. His property was assessed at $175,000, and the tax rate was 2% of assessed value. The amount of taxes with which he would be debited in escrow would be: (a. $1,750.02. b. $1,458.35. c. $3,500.00. d. none of these.)

a. 128 feet

Jim owns a lot with 14,500 square feet. The lot has a depth of 160 feet. He buys two more lots adjacent lots both with a depth of 160 feet. Together, the two new lots contain 6,000 square feet. What is the total front footage of all the lots combined? (a. 128 feet b. 133 feet c. 91 feet d. None of the above)

d. 4.4

Jim purchased a home for $85,000, with a $25,000 down payment and financed the balance with a $60,000 straight note. He then sold the property for double the purchase price, paying no principal or interest payments on the loan during his ownership. Each dollar invested is now worth? (a. 2.2 b. 4 c. 4.6 d. 4.4)

a. 0.25

Jim purchased a property for 20% less than the listed price. Later he sold the property for the original listed price. What percentage profit did he make? (a. 0.25 b. 0.2 c. 0.35 d. 0.45)

b. 71

John Brown purchased a 1/2 acre vacant lot which was 100 feet deep. He paid $0.50 per square foot and now wants to sell the lot and make a 25% profit after paying $250 in costs plus a 10% commission. At what price per front foot must the lot sell? (a. 50 b. 71 c. 109 d. 154)

d. 0.26

John Doe buys a piece of property as an investment for $10,000. John's capital investment is $1,000. He pays 6% interest on a loan of $9,000, and the property appreciates 8%. After one year the property is sold. What percent of profit did he realize on his initial invested capital? (a. 0.12 b. 0.1 c. 0.22 d. 0.26)

a. 0.086

John bought a house four years ago for $80,000. He just sold it for $86,900. What was the percent of profit? (a. 0.086 b. 0.1 c. 0.2 d. 0.15)

c. 0.14

John buys a piece of property as an investment for $15,000. John's capital investment is $5,000. He pays 5% interest on a loan of $10,000, and the property appreciates 8%. After one year the property is sold. What percent of profit did he realize on his initial invested capital? (a. 0.12 b. 0.1 c. 0.14 d. None of the above)

c. 5% but less than 6%

John has a loan for $18,000 with interest to be paid at the rate of $225 quarterly. What is the interest rate on the loan? (a. 3% but less than 4% b. 4% but less than 5% c. 5% but less than 6% d. 6% but less than 7%)

d. 70112

John owns a single family home which rents for $800 per month. A home across the street rents for $890 per month and recently sold for $78,000. If John applied the same gross rent multiplier to his home as was used on the home across the street, what would be the value of John's home? (a. 50000 b. 67800 c. 69565 d. 70112)

c. 2600

John paid $6.50 per square foot to purchase a rectangular parcel of land containing 40,000 square feet that was 400 feet deep. What was the cost per front foot? (a. 222 b. 650 c. 2600 d. 1000)

d. 12500

John purchased an income property for $575,000. The land is valued at $200,000. If straight line depreciation is used over a 30 year period, the annual depreciation would be: (a. 19166 b. 18000 c. 10000 d. 12500)

d. 98000

John wants a loan to finance the purchase of a house. The bank requires an 80% LTV. The purchase price of the house is $122,500. What is the maximum loan amount Brown could get? (a. 110500 b. 95777 c. 99875 d. 98000)

d. 1620

Ken purchased a property for $16,380. If he wants to sell it without a loss for a price which would include a 9% commission, the value of the property would have to appreciate: (a. 24%. b. 1940 c. 17%. d. 1620)

c. 119000

Ken, an investor, wants to build a rental property which will have a gross income of $3,200 per month and annual expenses of $6,500. The investors require a 10% capitalization rate on the investment. If the improvements cost $200,000, how much can the investors pay for the land? (a. 31900 b. 50000 c. 119000 d. 319000)

b. 16000

Lot "A" is 3/4 of an acre. Lot "B" is 2/3 of the size of lot "A." The owner of these lots paid $14,000 for lot "B." He subdivided two lots into as many parcels as possible, all measuring 110' by 82.5' each. He sold each parcel for $7,500. His total selling price gave him a 50% profit on his original investment. What was the purchase price of lot "A?" (a. 30000 b. 16000 c. 31000 d. 15000)

b. 25600

Lot "X" is an acre. Lot "Z" is 2/3 of the size of lot "X." Lot Z was purchased for $16,000. The two lots were divided into as many parcels as possible, all measuring 110' by 82.5' each. Each parcel was sold for $6,500. The total selling price was 25% profit on the original investment. What was the purchase price of lot "X?" (a. 36000 b. 25600 c. 41600 d. 52000)

d. 23478

Lynn sold a lot for $27,000. She made a 15% profit. What did the lot cost? (a. 18333 b. 20000 c. 20833.33 d. 23478)

b. 1130

Mary bought a piece of land which was 3/4 of an acre. It was 110 feet deep and she paid $1,750 for the land. She owned the adjoining land which was 2/3 the size of the land she purchased and had the same depth. Both parcels were rectangular. She then decided to divide the land into lots which were 82 feet wide. The lots were sold for $600 each. The total money she received represented a 25% profit over the cost of the two original parcels. What was the price of the 2/3 acre piece of land? (a. 1000 b. 1130 c. 2880 d. 3600)

c. 0.25

Mary sold her house and took back a second trust deed for $5,400. She immediately sold it for $4,050. What was the rate of discount? (a. 0.28 b. 0.35 c. 0.25 d. 0.65)

b. 2235

Mary sold her house to Bob and escrow closed on November 10. The property taxes for the year ($3,500) have been paid. Using 30-day months and a 360-day year in the calculations, approximately how much does Bob owe to Mary for property taxes? (a. 1326 b. 2235 c. 1333 d. 2250)

b. 432

Measurements of a driveway are 24' x 36'. How much would it cost to replace the driveway if a concrete slab 4" thick cost $15.00 a cubic yard to install and the cost of labor amounted to $272.00 over and above the cost of the concrete? (a. 820 b. 432 c. 542 d. 752)

c. 15.5%.

Mike sold his home and carried back a $35,500 second trust deed. He immediately sold the loan at a discount to an investor and received $30,000. What was the rate of discount? (a. 25%. b. 30%. c. 15.5%. d. None of the above.)

a. 20780

Mr. Bill pays $152,400 for a home. If it costs 12% to sell his home before he could sell it at a profit, how much would it have to appreciate? (a. 20780 b. 1 c. 0.34 d. 2828)

a. 2078

Mr. Bingham pays $15,240 for a lot. It costs 12% to sell his lot. Before he could sell it at a profit how much would it have to appreciate? (a. 2078 b. 1 c. 0.34 d. 2828)

d. 6375

Mr. Brown listed his home with broker Green for $150,000 with a commission rate of 6%. Broker Green brought an offer at 15% less than the listed price, Mr. Brown said he would accept the offer if the broker reduced his commission by 16 2/3%. If they all agreed to these terms, what amount of commission would broker Green receive? (a. 5500 b. 8250 c. 7000 d. 6375)

d. 17707

Mr. Brown sells a piece of land. It is free of all encumbrances. The broker will receive a 6% commission and Mr. Brown's total settlement charges are $345. Mr. Brown received a check at closing for $16,300. The selling price was approximately: (a. 17200 b. 17000 c. 16270 d. 17707)

a. Buy the property, since the capitalization rate is approximately 1% greater than required

Mr. Buyer is considering purchasing an apartment building. He is given the following information by the agent: listing price, $948,000; gross income $143,000; expenses, $57,200; net income, $85,800. He wants an overall return of at least 8%. His agent should advise him in which of the following ways? (a. Buy the property, since the capitalization rate is approximately 1% greater than required b. Buy the property, since the capitalization rate is approximately 7% greater than required c. Do not buy the property, since the capitalization rate is approximately 5% less than required d. Do not buy the property, since the capitalization rate is approximately 1% less than required)

d. 5609

Mr. Johnson bought a house for $64,500. He later sold the house and broke even, after paying 8% of the selling price in commission, and closing costs. How much had the lot increased in value? (a. 0.12 b. 6500 c. 8640 d. 5609)

d. 7425

Mr. Johnson listed his home with Broker Smith for $165,000 with a commission rate of 6%. Broker Smith brought an offer at 10% less than the listed price. Mr. Johnson said he would accept the offer if the broker reduced his commission by 16-2/3%. If they all agreed to these terms, what amount of commission would Broker Smith receive? (a. 5500 b. 8250 c. 7000 d. 7425)

d. $5.16.

Mr. Johnson purchased a home for $79,000 with a $19,000 cash down payment and a $60,000 loan. This loan was interest free and required no payments of principal for five years. One year later he sold the home for double its purchase price. Each dollar of his original cash investment now equals: (a. $2.00. b. $4.60. c. $7.30. d. $5.16.)

b. $4.60.

Mr. Jones purchased a home for $72,000 with a $20,000 cash down payment and a $52,000 loan. This loan was interest free and required no payments of principal for five years. One year later, he sold the home for double its purchase price. Each dollar of his original cash investment now equals: (a. $2.00. b. $4.60. c. $7.30. d. $9.20.)

c. 2035

Mr. Jones, an owner of a packaging firm, purchased a new machine in 2008 and paid $5,500. It was estimated at the time of the purchase to have a total economic life of 10 years and a salvage value of $550. Using the straight line method of depreciation, the book value at the end of 7 years would be: (a. 1920 b. 1729 c. 2035 d. 2368)

d. 6000

Mr. Kent received a straight loan on which he paid only the interest at 4-1/2%, all due and payable in one year. His monthly interest payment was $22.50. What was the amount of the loan? (a. 3000 b. 4000 c. 5000 d. 6000)

c. 190000

Mr. Sing purchased a brand new piece of income property for $190,000. The listed price was $220,000. Mr. Sing considered this a good deal on his part, since he only put $10,000 down and acquired a new first trust deed for the difference. The tax assessed value was indicated at $150,000. Mr. Sing's cost basis for income tax purposes would be: (a. 180000 b. 150000 c. 190000 d. none of the above)

d. 16495

Mr. Smith sells a piece of land. It is free of all encumbrances. The broker will receive a 6% commission and Mr. Smith's total escrow charges are $215.30. Mr. Smith received a check at the close of escrow for $15,290. The selling price was approximately: (a. 17200 b. 17000 c. 16270 d. 16495)

d. 16495

Mr. Smith sells his home. It is free of all encumbrances. The broker will receive a 6% commission and Mr. Smith's total escrow charges are $215.30. Mr. Smith received a check at the close of escrow for $15,290. The selling price was approximately: (a. 17200 b. 17000 c. 16270 d. 16495)

d. 4600

Mr. Stevens received a straight loan on which he paid only the interest at 6%, all due and payable in one year. His monthly interest payment was $23.00. What was the amount of the loan? (a. 3000 b. 4000 c. 5000 d. 4600)

a. 22500

Mr. Stewart has an investment in a 20-unit apartment building which is adjacent to a freeway. Because of its proximity to the freeway, the owner lost $150 per month rent. If the capitalization rate were set at 8%, what would be the loss in value to the property? (a. 22500 b. 2400 c. 24000 d. 22000)

b. 115833

Mr. White sold an apartment building for $139,000. This was 20% more than what he paid for it. His original cost was approximately: (a. 114200 b. 115833 c. 144176 d. there is insufficient information to arrive at an answer)

d. Nothing

Mr. and Mrs. Garcia purchased a home for $120,000 and secured a new first trust deed and note at that time. Within two months after the purchase, the Garcias recorded a homestead on the home. One year later they had an unsecured judgment lien levied against them for $5,500. Subsequently, they listed the property and sold it for $121,000 at which time the trust deed and note balance was $115,500. Under the circumstances, the holder of the judgment lien would receive which of the following amounts from escrow out of the proceeds of the sale? (a. 5500 b. 4500 c. 6000 d. Nothing)

b. 160000

Mrs. Adams owned an income property with an adjusted cost basis of $160,000 and a fair market value of $240,000. She exchanged the property for another income property which had a fair market value of $230,000. Both properties had no loans against them and no adjustment was made for the differences in value. For federal income tax purposes, the new property will have a basis for Mrs. Adams of: (a. 100000 b. 160000 c. 200000 d. 210000)

c. 150000

Ms. Pat purchased a house in a run-down condition and spent an amount equal to 10% of the purchase to fix it up and bring it to its present value. The house is now worth $165,000. The cost of the house is equal to the existing loan of the property. The amount of the loan is: (a. 158000 b. 148500 c. 150000 d. 164500)

c. 15000

Ms. Prendergast purchased a house in a run-down condition and spent an amount equal to 10% of the purchase to fix it up and bring it to its present value. The house is now worth $16,500. The cost of the house is equal to the existing loan of the property. The amount of the loan is: (a. 15800 b. 14850 c. 15000 d. 16450)

b. 17000

Ms. Williams purchased a house in a run-down condition and spent an amount equal to 10% of the purchase to fix it up and bring it to its present value. The house in now worth $18,700. The cost of the house is equal to the existing loan of the property. The amount of the loan is: (a. 15800 b. 17000 c. 15000 d. 16450)

b. 116374

Ned just sold his house for 9% less than he paid for it. The selling price was $105,900. What was the original purchase price? (a. 111500 b. 116374 c. 112500 d. 110000)

c. 250000

Ned, a salesperson working for Broker George, received a 45% share of a 8% commission. His share came to $9,000. What was the selling price of the property? (a. 100000 b. 150000 c. 250000 d. 300000)

a. 6" x 12" x 2"

Of the following, which is equivalent to a board foot? (a. 6" x 12" x 2" b. 6" x 12" x 1" c. 12" x 12" x 2" d. 12" x 12" x 12")

b. 27 cubic feet

One cubic yard is equal to how many cubic feet? (a. 9 cubic feet b. 27 cubic feet c. 12 cubic feet d. none of the above)

c. 27 cubic feet

One cubic yard of concrete is equal to how many cubic feet of concrete? (a. 9 cubic feet b. 12 cubic feet c. 27 cubic feet d. None of the above)

c. More than $2,500, but less than $3,000

Placido has set an asking price of $78,200 for his 9 acres of land. His friend, Luciano, wants to buy a portion of this land measuring 100' by 145.2'. Assuming Luciano pays Placido's asking price on a square foot basis, how much will Luciano pay? (a. Less than 3% of $78,200 b. More than $2,000, but less than $2,500 c. More than $2,500, but less than $3,000 d. More than 5% of $78,200)

a. 48000

Property "A" has a monthly gross income of $300. Property "B" has a monthly gross income of $700. Using a monthly gross multiplier of 120 and calculating the difference in value between the two properties, the result would be: (a. 48000 b. 36000 c. 30000 d. 70000)

a. 48000

Property "A" has a monthly gross income of $500. Property "B" has a monthly gross income of $900. Using a monthly gross multiplier of 120 and calculating the difference in value between the two properties, the result would be: (a. 48000 b. 36000 c. 30000 d. 70000)

a. 195000

Property Z is comparable to a house being appraised. Property Z sold for $220,000, but has an oversized lot valued at an extra $25,000. The indicated value for the subject property using this comparable is: (a. 195000 b. 245000 c. 207500 d. not determinable from the information given.)

b. 200000

Property is valued at $240,000 using a capitalization rate of 10%. What would the value of the same property be using a capitalization rate of 12%? (a. 210000 b. 200000 c. 240000 d. 220000)

b. 650

Rudolfo held a $1,968 straight note bearing 8.5% interest for 3 years, 10 months and 20 days. Approximately, how much interest did he earn? (a. 668 b. 650 c. 550 d. 503)

c. 201500

Sam paid $310,000 for an income property. His tax bill showed the assessments to be as follows: Land $20,120, improvements $37,200. In arriving at a figure to be used for depreciation for income tax purposes, he used his assessment figures as a basis. Which of the following most nearly reflects the depreciable amount? (a. 37200 b. 57320 c. 201500 d. 310000)

a. $7.00.

Several years ago, Mr. Matthews bought property for $12,000, paying $2,000 in cash with the seller taking back a trust deed for the balance of the purchase price. Before any payments had been made on the trust deed note, he sold the property several months later for $24,000. His invested dollar in these circumstances is worth: (a. $7.00. b. $11.00. c. $10.10. d. $1.10.)

b. $11.00.

Several years ago, Mr. Moss bought property for $10,000, paying $1,000 in cash with the seller taking back a trust deed for the balance of the purchase price. Before any payments had been made on the trust deed note, he sold the property several months later for $20,000. His invested dollar in these circumstances is worth: (a. $100.10. b. $11.00. c. $10.10. d. $1.10.)

b. $11.00.

Several years ago, Mr. Mossman bought property for $10,000, paying $1,000 in cash with the seller taking back a trust deed for the balance of the purchase price. Before any payments had been made on the trust deed note, he sold the property several months later for $20,000. His invested dollar in these circumstances is worth: (a. $100.10. b. $11.00. c. $10.10. d. $1.10.)

b. 20

Starting at the NW corner of the SE 1/4 of Section 16, thence to a point 1,320 feet directly east, thence 660 feet directly south, thence 1,320 feet directly west, thence north to the point of beginning. This description contains how many acres? (a. 10 b. 20 c. 40 d. 80)

a. 33%.

Steve bought a piece of property for 25% less than the listed price. He later sold it for the listed price. His gain was: (a. 33%. b. 20%. c. 25%. d. none of the above)

c. 825

Steve paid $5.50 per square foot to purchase a rectangular parcel of land containing 30,000 square feet. The land was 150 feet deep, what was the cost per front foot? (a. 222 b. 1100 c. 825 d. 1000)

b. 0.145

Steve purchased a note worth $6,000 for $5,500. Interest rate on the note is 5%. What was his percentage of profit made on his investment if the note is paid off in one year? (a. 0.067 b. 0.145 c. 0.178 d. 0.06)

a. 104005

Steve sold his home which had no loans against it. He received a settlement check in the amount of $96,400 after paying closing costs of $1,365.00 plus a 6% real estate broker's commission. What was the selling price? (a. 104005 b. 96857 c. 97995 d. 98970)

c. 74500

Sue agreed to buy a home for $310,000 and she deposited $15,000 as a down payment. A bank has agreed to loan her 80% of the appraised value which is $295,000. The settlement costs are to be charged to the buyer and amount to 5% of the purchase price. How much additional money must the buyer deposit? (a. 74000 b. 89500 c. 74500 d. There is insufficient information to arrive at an answer)

c. 1800

Sue sold her property for $27,500 and realized a 7% profit over what she paid for it. Her profit was: (a. 3520 b. 3811 c. 1800 d. 3872)

b. $1,000 loss

Susan had two lots which she sold for $10,000, which was 20% over their original cost four years ago. While she owned the lots, she paid property taxes each year at a rate of $8.00 per $100 of an assessed value of 25% of their purchase price. She suffered an annual loss of 6% imputed interest on her original investment as an expense. How much did she gain or lose in this transaction? (a. $420 loss b. $1,000 loss c. $533 gain d. $1,000 gain)

a. 18600

Ted borrowed $40,000 from a bank to purchase a lot. He paid 4 points to get the loan. The loan contained a 4% prepayment penalty. His monthly payment was $160.00, including interest at 8% per year. Five years later, John sold this real estate and paid-off the loan. If the loan had an average loan balance of $38,500 during the five years Ted owned the property, what was the bank's gross profit on this loan? (a. 18600 b. 7248 c. 8600 d. 9999)

d. 1.522

Ted paid $85,000 for a house, putting up a 15% cash down payment and borrowing the balance at 8.5% interest. The loan is payable over 30 years with monthly payments of $560, including principal and interest. If Ted makes the payments as scheduled, the percentage that the original cost of the house increased because of the use of credit is? (a. 0.75 b. 1.2 c. 1.62 d. 1.522)

c. $50,000, the value of the land.

Ted purchased a building for $250,000. The terms of purchase were $175,000 cash, and a purchase money deed of trust for the balance. If the land is valued at $50,000 what is the adjusted cost basis of the property after it is fully depreciated? (a. The remaining balance on the purchase money deed of trust. b. $200,000, the value of the improvements. c. $50,000, the value of the land. d. It would have no adjusted cost basis as it is fully depreciated.)

d. 2700

The Bakers bought a vacation home with a $90,000 first loan. Current conventional rates are 10.5%, 30-year term. The seller agreed to pay three points, which will amount to: (a. 2100 b. 1400 c. 1800 d. 2700)

d. 80 acres.

The N 1/2 of the NW 1/4 of Section 25 contains: (a. 320 acres. b. 640 acres. c. 160 acres. d. 80 acres.)

d. 240

The S 1/2 of the SE 1/4 of Section 4, the N 1/2 of the NW 1/4 of Section 8, and the N 1/2 of the NE 1/4 of Section 15 contain how many acres? (a. 80 b. 320 c. 720 d. 240)

d. 80 acres.

The SW 1/4 of the NE 1/4 and the NW 1/4 of the NW 1/4 of Sec. 25 contains: (a. 10 acres. b. 20 acres. c. 40 acres. d. 80 acres.)

d. 5800

The cost to pave a driveway that is 450 feet by 16 feet, at $7.25 per square yard is: (a. 5445 b. 16335 c. 52200 d. 5800)

a. 525

The entire stock of a retail store was sold for $8,400 to Sam Jones. Mr. Jones then sold the stock for 25% more than he paid for it, but due to some debts he lost 15% of the selling price. The net profit on Mr. Jones' investment was: (a. 525 b. 2100 c. 8925 d. 15%.)

a. 752

The entire stock of a retail store was sold for $9,400 to Bill Smith. Mr. Smith then sold the stock for 20% more than he paid for it, but due to some debts he lost 10% of the selling price. The net profit on Mr. Smith's' investment was: (a. 752 b. 2100 c. 8925 d. 15%.)

a. 999 square feet

The inside of a building measured 25 feet by 35 feet and has 1 foot thick walls. How many square feet of ground does the building cover? (a. 999 square feet b. 875 square feet c. 945 square feet d. 925 square feet)

d. 24000

The net income of an apartment building went down $200 per month when a freeway was built nearby. If investors demand a 10% capitalization rate for this area, how much has the building lost in value? (a. 3333 b. 20000 c. 36000 d. 24000)

b. 295

The number of linear feet on each side of 2 acres of land that is almost square would be approximately? (a. 209 b. 295 c. 320 d. 410)

b. 209

The number of linear feet on each side of an acre of land that is almost square would be approximately: (a. 150 b. 209 c. 320 d. 410)

b. 43,560 square feet x 36 sections x 640 acres.

The number of square feet contained in a township can be determined by multiplying: (a. 42,650 square feet x 6 sections x 640 acres. b. 43,560 square feet x 36 sections x 640 acres. c. 45,360 square feet x 36 sections. d. 23,040 square feet x 6 sections x 640 acres.)

d. 75000

The original value of a property was $130,000, with the land valued at $20,000. If the economic life of the improvements were estimated to be 30 years using the straight line approach, what was the book value of the property after 15 years? (a. 85000 b. 55575 c. 65000 d. 75000)

c. 0.1034

The principal balance on a loan is currently $58,500. The scheduled monthly payment on the loan, including principal and interest, is $550. All of the payment goes toward interest, except for $46. What is the interest rate? (a. 0.09 b. 0.095 c. 0.1034 d. 0.1275)

c. 12.5.

The reciprocal of 8% is: (a. 125 b. 1.25. c. 12.5. d. 125)

d. 0.1114

The regular monthly payment on a loan, including principal and interest, was $560. All of the payment went toward interest, except for $45. The principal balance on the loan during that month was $55,500. What was the interest rate? (a. 0.08 b. 9-1/2% c. 0.1 d. 0.1114)

a. $393.34.

The seller of a home has paid the annual property taxes of $2,360; escrow will close on May 1. If the buyer and seller agree to prorate the property taxes as of the sale date, the buyer's portion of the taxes would be most nearly: (a. $393.34. b. $196.67. c. $2,360.00. d. $1,966.70.)

b. 127.13

There was fire insurance on a building valued at $12,000. The cost of the policy was $166.40 for a three-year period. The policy became effective on March 1, 1992. On November 16, 1992, the owner sold the building and canceled the policy. What was the value of the unused portion of the policy? (a. 116.6 b. 127.13 c. 123.1 d. 125.5)

b. 121

There was fire insurance on a building valued at $9,000. The cost of the policy was $158.40 for a three-year period. The policy became effective on March 1, 1992. On November 16, 1992, the owner sold the building and canceled the policy. What was the value of the unused portion of the policy? (a. 116.6 b. 121 c. 123.1 d. 125.5)

a. 2600

To buy a car, Bob executed a second trust deed and note on his home for $2,600, payable at $66.00 per month, including interest at 8%. When he sold his home, he paid off the entire loan balance of $1,989.50. What was the total face amount of the principal on the loan? (a. 2600 b. 2772 c. 2000 d. 1989.5)

c. 90000

To receive a 12% return on an investment of $750,000, what would be the required net operating income? (a. 6250000 b. 625000 c. 90000 d. 900000)

d. 0.26

Tom buys a piece of property as an investment for $10,000. Tom's capital investment is $1,000. He pays 6% interest on a loan of $9,000, and the property appreciates 8%. After one year the property is sold. What percent of profit did he realize on his initial invested capital? (a. 0.12 b. 0.1 c. None of the above d. 0.26)

a. 171000

Tom obtains an interest-only purchase money loan for $60,000. The interest rate is 9.5% and the term is 30 years. How much interest will Tom have paid at the end of the 30-year term? (a. 171000 b. 17000 c. 1700 d. 1710000)

b. lower by 20%.

Two appraisers, one using a capitalization rate of 10% and the other one 8%, both agree that the net income of a building was $11,200. The higher capitalization rate made the price of the building: (a. higher by 25%. b. lower by 20%. c. $896 lower. d. lower by 25%.)

a. He had a $4,890 loss.

Two vacant lots sold for a total of $17,940. Five years ago, the owner purchased them for $15,600. During the period of ownership, the following expenses were incurred: 6% annual interest on original cost, $50 annual weed burning for both lots, $10 annual miscellaneous expenses for both lots, and $225 annual real property taxes on each lot. How much did the owner gain or lose on the sale? (a. He had a $4,890 loss. b. He had a $2,240 loss. c. He had a $4,890 gain. d. He had a $2,240 gain.)

a. 7980

Waylon purchased a home for $82,500. He got a first trust deed from a bank for 80% of the purchase price and put up a cash deposit of $1,800. In a separate transaction he sold a $9,600 trust deed for a 30% discount and applied the proceeds to the purchase price. If the seller will carry a second trust deed for the balance of the purchase price, what will be the amount of the second trust deed carried by the owner? (a. 7980 b. 8330 c. 6421 d. 5222)

c. 837

What is the salesman's 45% of a 6% commission on a $31,000 sale? (a. 923.6 b. 841.8 c. 837 d. None of the above)

c. 837

What is the salesperson's 45% of a 6% commission on a $31,000 sale? (a. 923.6 b. 841.8 c. 837 d. None of the above)

a. 0.31

What percentage profit would an investor make if he purchased two lots for $16,000 each and then divided into three lots and sold them for $14,000 each? (a. 0.31 b. 0.21 c. 0.15 d. 0.25)

a. 65812.5

What would be the total property value of a four unit apartment building if each unit rented for $206.25 per month, vacancies were 5% of gross rents, annual operating expenses were $4,140, and the net income represented an 8% capitalization rate? (a. 65812.5 b. 68400.25 c. 71484.5 d. 72000.75)

d. 242000

When there is an existing assessment lien against a property and the buyer assumes that lien, the cost basis of the property is then the original cost plus the amount of the lien. If Juan and Rosa bought a home for $240,000 and assumed an existing assessment lien in the amount of $2,000, what is their cost basis? (a. 240000 b. 238000 c. 240500 d. 242000)

d. 242000

When there is an existing assessment lien against a property and the buyer assumes that lien, the cost basis of the property is then the original cost, plus the amount of the lien. If Juan and Rosa bought a home for $240,000, and assumed an existing assessment lien in the amount of $2,000, what is their cost basis? (a. 240000 b. 238000 c. 240500 d. 242000)

d. All of the above

Which of the following dimensions is equivalent to an acre? (a. 43,560 square feet b. 180' x 242' c. 1/640 of a section d. All of the above)

d. Width x length divided by 2 x height = cubic feet

Which of the following formulas is used to calculate the cubic footage of an attic with a gable roof? (a. Width x length x height = cubic feet b. Width x length divided by 5 x height x 2 = cubic feet c. Width x length divided by 4 x height = cubic feet d. Width x length divided by 2 x height = cubic feet)

d. all of the above

Which of the following is an acre? (a. 43,560 square feet b. 100 ft. x 435.6 feet c. 33 ft. x 1,320 feet d. all of the above)

d. All of the above

Which of the following is equivalent to an acre? (a. 43,560 square feet b. 100 ft. x 435.6 feet c. 50 ft. x 871.2 feet d. All of the above)

d. A parcel 5,000 feet by 6,000 feet

Which of the following is larger than a section? (a. 27,000,000 square feet b. 1/36 of a township c. 16 times 40 acres d. A parcel 5,000 feet by 6,000 feet)

a. $22,500 with interest at 14.25% per year payable at $320 a month for 10 years; the total interest is $19,827.60

Which of the following loans will require a balloon payment? (a. $22,500 with interest at 14.25% per year payable at $320 a month for 10 years; the total interest is $19,827.60 b. $40,000 with interest at 10% per year payable at $429.85 a month for 15 years; the total interest is $37,373 c. $100,000 with interest at 9.5% per year payable at $840.86 a month for 30 years; the total interest is $202,709 d. None of the above)

a. 6" x 12" x 2"

Which of the following measurements are equivalent to a board foot? (a. 6" x 12" x 2" b. 6" x 12" x 1" c. 12" x 12" x 2" d. 12" x 12" x 12")

d. 360 feet

You have just bought a piece of property that contains 54,000 square feet and is 180 feet deep. There are 2 vacant lots, one on each side of your lot, that have the same depth as your lot and contain 5,400 square feet each. If you bought these lots, your total frontage would be? (a. 140 feet b. 320 feet c. 380 feet d. 360 feet)

c. 40 acres.

1,320 feet by 1,320 feet contains: (a. 10 acres. b. 20 acres. c. 40 acres. d. 80 acres.)

a. 1/16 of a section.

1/4 mile by 1/4 mile is equivalent to: (a. 1/16 of a section. b. 1/8 of a section. c. 1/4 of a section. d. none of the above.)

b. 1655

A $5,000 investment at 10% interest compounded annually earns how much in three years? (a. 1200 b. 1655 c. 1400 d. 1525)

d. 0.178

A $5,000 loan is sold to an investor for $4,500. It is a straight note, due and payable at the end of one year. It bears a 6% interest rate. What percentage return on the principal dollar invested will be made by the investor? (a. 6.7 b. 0.09 c. 0.111 d. 0.178)

a. 0.1738

A $7,000 loan is sold to an investor for $6,500. It is a straight note, due and payable at the end of one year. It bears a 9% interest rate. What percentage return on the principal dollar invested will be made by the investor? (a. 0.1738 b. 0.11 c. 0.178 d. 0.25)

a. 78000

A 120-room building has 14 1-bedroom units renting monthly at $150.00. 12 2-bedroom units at $200.00, and 8 3-bedroom units at $250.00. The gross annual rental would be? (a. 78000 b. 58000 c. 66000 d. None of these)

a. 520000

A 20-unit apartment building is valued at $600,000 based on a 10% capitalization rate. If the rent for each unit increased $10 per month, what would the value of the same building be based on a capitalization rate of 12%? (a. 520000 b. 530000 c. 540000 d. 500000)

b. 530000

A 20-unit apartment building is valued at $800,000 based on a 10% capitalization rate. If the rent for each unit increased $20 per month, what would the value of the same building be based on a capitalization rate of 16%? (a. 520000 b. 530000 c. 540000 d. 500000)

b. 0.2

A 40-acre tract was purchased for $500 per acre and divided into 4 parcels. The parcels sold for $6,000 each. What was the percentage return on the purchase price? (a. 0.15 b. 0.2 c. 0.25 d. 0.3)

c. 25

A 60-acre tract was purchased for $30,000 per acre and divided into 3 parcels and sold for $750,000 each. What was the percentage return on the purchase price? (a. 15 b. 20 c. 25 d. 30)

c. 0.25

A 60-acre tract was purchased for $300 per acre and divided into 3 parcels and sold for $7,500 each. What was the percentage return on the purchase price? (a. 0.15 b. 0.2 c. 0.25 d. 0.3)

d. all of these

A board foot is exactly: (a. 2" x 6" x 12". b. 3" x 4" x 12". c. 12" x 12" x 1". d. all of these)

a. 2" x 8" x 9".

A board foot is exactly: (a. 2" x 8" x 9". b. 2" x 72". c. 16" x 9". d. all of these)

d. 8

A board foot of lumber contains 144 cubic inches. How many board feet of lumber can be obtained from a piece 2" x 4" x 12'? (a. 3 b. 6 c. 7 d. 8)

d. 53333

A building has 150,000 square feet of floor space. If the owner wants 80% of the floor space covered with carpeting at a cost of $4.00 per square yard, his approximate cost would be: (a. 13330 b. 48000 c. 66667 d. 53333)

c. 90%.

A building that has an effective gross income of $65,000 and total operating expenses of $6,500 has a net income ratio of: (a. 16%. b. 10%. c. 90%. d. 19%.)

b. 59.58

A buyer assumed a note secured by a deed of trust. The balance of the note was $11,000 with an annual interest rate of 6-1/2% payable quarterly. The interest on the note was to be prorated upon possession of the property. If the interest on the note had been paid to March 15, and he took possession February 15, he would owe how much prorated interest? (a. 168.75 b. 59.58 c. 675 d. None of the above)

c. 87.08

A buyer assumed a note secured by a deed of trust. The balance of the note was $11,000 with an annual interest rate of 9-1/2% payable quarterly. The interest on the note was to be prorated upon possession of the property. If the interest on the note had been paid to March 15, and he took possession February 15, he would owe how much prorated interest? (a. 168.75 b. 56.25 c. 87.08 d. None of the above)

b. 56.25

A buyer assumed a note secured by a deed of trust. The balance of the note was $9,000 with an annual interest rate of 7 1/2% payable quarterly. The interest on the note was to be prorated upon possession of the property. If the interest on the note had been paid to March 15, and he took possession February 15, he would owe how much prorated interest? (a. 168.75 b. 56.25 c. 675 d. None of the above)

c. 50300

A buyer has agreed to buy a home for $210,000. She has deposited $6,000 into escrow. A lender has agreed to loan 80% of the appraised value, which is $200,000, and the settlement costs to be charged the buyer amount to 3% of the purchase price. How much additional money must the buyer deposit into escrow prior to closing? (a. 25000 b. 40300 c. 50300 d. There is insufficient information to arrive at an answer.)

a. $931.25.

A buyer purchased a home for $125,000 putting up a good down payment of 20% of the purchase price, and financing the balance on a 25-year amortized loan with interest at 8.25% per annum. The bank requires monthly impounds for property taxes of $750 per year and casualty insurance costing $945 for a three year policy. Assuming that the first monthly payment on the principal is $155, the total amount the buyer will have to pay the first month will be approximately: (a. $931.25. b. $357.00. c. $751.00. d. $827.00.)

a. 937500

A buyer wants a 8% return on his investment and he is interested in a retail center that produces a net operating income of $75,000 per year, what would the investor be willing to pay for the center? (a. 937500 b. 630000 c. 900000 d. 11250000)

d. None of these

A club house construction cost $513,000. The building is 70 feet long, 50 feet wide and 12 feet high. What was the cost of this building per cubic foot? (a. 6.91 b. 16.44 c. 72 d. None of these)

c. 741.6

A corner lot has dimensions of 100 feet by 100 feet. The owner decided to put a 6-foot wide sidewalk along the street frontage on two sides of his lot. The sidewalk was outside of his property line. If the walk costs 60 cents per square foot, how much did the sidewalk cost? (a. 697.6 b. 710 c. 741.6 d. 750.6)

a. 4900

A corner lot measuring 50' across the front and 150' deep has a front yard set-back of 10' and a 15' set-back on the side street. The total number of buildable square feet is: (a. 4900 b. 6000 c. 7000 d. 7500)

b. None

A deposit receipt states, "Buyer to assume existing first trust deed of $9,600 at 5-1/2% paid per quarter paid March 31, June 30, September 30, and December 31." If Mr. Taylor closes escrow on June 30, how much interest will Mr. Taylor owe? (a. 132 b. None c. 520 d. 43.33)

b. 465

A driveway measures 25' x 35'. How much would it cost to replace the driveway if a concrete slab 4" thick cost $15.00 a cubic yard and the cost of labor is $300.00 over and above the cost of the concrete? (a. 820 b. 465 c. 381 d. 786)

c. 160 acres

A farm measures one-half mile by one-half mile. How many acres does the farm contain? (a. 20 acres b. 40 acres c. 160 acres d. 320 acres)

a. 20000

A home owner sold his house for $23,000. This selling price represented a 15% profit over what he had originally paid for the house. What was the original price of the home? (a. 20000 b. 19550 c. 27000 d. None of the above)

a. 20000

A home owner sold his lot for $23,000. This selling price represented a 15% profit over what he had originally paid for it. What was the original price of the lot? (a. 20000 b. 19550 c. 27000 d. None of the above)

a. 15500

A home sold for $16,950. This included a profit of 9%. The original cost of the home was approximately: (a. 15500 b. 15400 c. 16000 d. 16500)

d. $15,873.02.

A homeowner paid 4 points for a bank loan. The bank sold the loan to an insurance company at 5-1/2 point discount and received a check for $15,000. The original amount of the loan was: (a. 15054 b. $15,648.72. c. $15,563.63. d. $15,873.02.)

d. 15000

A homeowner paid 4 points for a bank loan. The bank sold the loan to an insurance company at a 3 1/2 point discount and received a check for $14,475. The original amount of the loan was: (a. 15054 b. $15,648.72. c. $15,563.63. d. 15000)

a. 155000

A house comparable to the subject property sold recently for $160,000 and is very similar to the subject, except that the comparable has an extra bathroom, valued at $5,000. What is the adjusted value of the comparable? (a. 155000 b. 165000 c. 160000 d. None of these)

b. 142

A house fronts on two roads running at right angles to each other. The house touches one road for 2,660 feet and on the second road for 1,980 feet. Another property line is parallel to the shorter of the two roads and runs for 2,660 feet. The final boundary is a straight line connecting the open ends. How many acres does the property contain? (a. 121 b. 142 c. 180 d. 270)

b. 210500

A house is to be sold in probate. The bid submitted to court for confirmation is $200,000. The first minimum overbid would be: (a. 200001 b. 210500 c. 225000 d. 230500)

b. 97100

A house is to be sold in probate. The first bid submitted is $92,000. If the court asks for additional bids and you wish to raise the first bid of $92,000, your second bid must be at least: (a. 95000 b. 97100 c. 96200 d. 92000)

b. 37487

A lender charged the borrower 2 points for making a loan. The lender then sold the loan immediately to an investor at a discount of 4-1/2 percent and received $35,800. What was the original loan amount? (a. 35750 b. 37487 c. 36350 d. 37987)

d. 0.27

A lender loans borrower Smith a sum of $1,800 and takes back a note and deed of trust. The note was set up to be fully amortized over a 1-year period, interest at 8% per year, payable at $162 per month. When the note was drawn, it was immediately sold to an investor for a 15% discount. If the loan were fully paid off at the end of the year, what percent return would the investor make on this investment? (a. 0.09 b. 0.24 c. 0.23 d. 0.27)

c. 10000

A loan was made for $14,000 at an interest rate of 6% per year for a 20-year period. The total interest that would be paid over the entire loan period if the monthly payment for this fully amortized loan is $7.17 per $1,000, would be approximately: (a. 18000 b. 16000 c. 10000 d. 14000)

c. 8760

A loan was made for $15,000 at an interest rate of 5% per year for a 20-year period. If the monthly payment for this fully amortized loan is $99, the total interest that would be paid over the entire loan period would be APPROXIMATELY: (a. 23775 b. 15000 c. 8760 d. 7550)

a. 7,475 square feet.

A lot measures 75' x 130' and has a front yard set-back of 10' and a 15' set-back on the side street. The total number of buildable square feet is: (a. 7,475 square feet. b. 9,750 square feet. c. 7,000 square feet. d. 7,500 square feet.)

d. 17700

A lot sold for $18,950. This included a profit of 7%. The original cost of the home was approximately? (a. 15500 b. 15400 c. 16000 d. 17700)

d. 2160

A man bought a property for $15,840. If he wants to sell it without a loss, for a price which would include a 12% commission, the value of the property would have to appreciate: (a. 24%. b. 1940 c. 17%. d. 2160)

c. 20000

A man has an investment in a 30-unit rental property which was adjacent to a freeway. Because of its proximity to the freeway, the owner lost $250 per month in rent. If the capitalization rate were set at 15%, the loss in value to the property was: (a. 2400 b. 2000 c. 20000 d. 24000)

a. 2500

A man needed money to purchase a new car and had a real estate broker arrange a fully amortized 3-year loan using his home as security. The note was for $2,500 calling for payments of $80.00 per month, including 10% interest. If the borrower received $1,900 cash proceeds from the loan after deducting all expenses, the total amount of principal that must be paid to the lender on the note is: (a. 2500 b. 3120 c. 2772 d. 1980)

b. 15 months.

A man obtained a $750 loan at 7.2% interest. He paid $67.50 total interest. The term of the loan was: (a. 12 months. b. 15 months. c. 18 months. d. 24 months.)

a. 140 feet

A man owns a lot with 15,400 square feet. It has a depth of 140 feet. He buys two more lots that are adjacent to his lot, both with a depth of 140 feet. Together, the two new lots contain 4,200 square feet. What is the total front footage of all the lots combined? (a. 140 feet b. 170 feet c. 180 feet d. None of the above)

c. 147000

A man paid $210,000 for some income units. His tax bill showed the assessments to be as follows: Land $15,120, improvements $35,280. In arriving at a figure to be used for depreciation for income tax purposes, he used his assessment figures as a basis. Which of the following most nearly reflects the depreciable amount? (a. 35280 b. 50400 c. 147000 d. 159000)

a. 1240

A man paid $9,300 for the stock in trade of a retail business. He sold it for 33-1/3% more than he paid for it. If he lost 15% of the gross sale price because of credit risks, the net profit on his original investment would be: (a. 1240 b. 85%. c. 3100 d. 18-1/3%.)

a. $593.75.

A man paid $9,500 for the stock in trade of a retail business. He sold it for 25% more than he paid for it. If he lost 15% of the gross sale price because of credit risks, the net profit on his original investment would be: (a. $593.75. b. 85%. c. 2375 d. 18-1/3%.)

b. 30%.

A man purchased income property for $240,000, which was returning 8% per annum on the gross investment. He paid $20,000 down, the balance on a long term straight loan on which he paid interest annually at 6%. Disregarding other expenses, the return on his equity was: (a. 8%. b. 30%. c. 48%. d. 36%.)

c. 0.178

A man purchases a $5,000 straight note for $4,500. Interest rate on the note is 6%. What was his percentage of profit made on his investment if the note is paid off in one year? (a. 0.067 b. 0.111 c. 0.178 d. 0.06)

a. 0.292

A man purchases a $8,000 straight note for $6,500. Interest rate on the note is 5%. What was his percentage of profit made on his investment if the note is paid off in one year? (a. 0.292 b. 0.111 c. 0.178 d. 0.06)

c. 0.178

A man purchases a note worth $5,000 for $4,500. Interest rate on the note is 6%. What was his percentage of profit made on his investment if note is paid off in one year? (a. 0.067 b. 0.111 c. 0.178 d. 0.06)

c. 2160

A man signed a note for $2,400, with 10% prepaid interest, to be paid from the loan proceeds in escrow. Which of the following amounts did he actually receive? (a. 2000 b. 2260 c. 2160 d. 2400)

d. 150

A man sold a parcel of land for $14,400, which was 20% more than he paid for it. The parcel was described as the S 1/2 of the NE 1/4 of Section 6. The price he paid per acre was: (a. 70 b. 100 c. 180 d. 150)

a. 750

A man sold his home and escrow closed January 1, 2008. The taxes for the fiscal year of 2007-2008 were unpaid. His property was assessed at $150,000, and the tax rate was 1% of assessed value. The amount of taxes with which he would be debited in escrow would be: (a. 750 b. 630 c. 600 d. none of these)

a. 2400

A man who needed money to purchase a new car had a real estate broker arrange a fully amortized 3-year loan using his home as security. The note was for $2,400 calling for payments of $77.00 per month, including 10% interest. If the borrower received $1,980 cash proceeds from the loan after deducting all expenses, the total amount of principal that must be paid to the lender on the note is: (a. 2400 b. 3120 c. 2772 d. 1980)

a. 1/16 of a section.

A parcel of land 1/4 mile by 1/4 mile is equivalent to: (a. 1/16 of a section. b. 1/8 of a section. c. 1/4 of a section. d. none of the above)

c. 2-1/2 acres

A parcel of land 330 feet wide and 330 feet deep contains approximately how many acres? (a. 2.75 acres b. 2-1/3 acres c. 2-1/2 acres d. 2-2/3 acres)

d. 45 feet

A parcel of land contains exactly one acre. If the parcel is divided into 4 equally sized lots, rectangular in shape and is 240 feet deep, approximately how wide is each of the 4 lots? (a. 181.5 feet b. 55 feet c. 60 feet d. 45 feet)

b. 112 feet

A parcel of land, rectangular in shape, has an area of 560 square yards. It has a 45-foot frontage. How deep is the lot? (a. 60 feet b. 112 feet c. 2,800 feet d. 200 yards)

b. 5 acres

A person bought a parcel of land measuring 110 yards by 220 yards. How many acres are in this parcel? (a. 2.5 acres b. 5 acres c. 10 acres d. 20 acres)

a. 90000

A person has a lot that he purchased for $20,000. He has been asked to build an apartment house with a projected income of $18,000 per year. His accountant estimates all expenses, including proper management, repairs, etc., to be $10,000 per year. The man wants an 8% return on his investment. Which of the following is nearest to the amount he can afford to pay for the erection of the building? (a. 90000 b. 100000 c. 110000 d. 120000)

a. 20000

A person has an investment in a 20-unit apartment building that is adjacent to a freeway. Because of its proximity to the freeway, the owner lost $200 per month rent. If the capitalization rate were set at 12%, the loss in value to the property was: (a. 20000 b. 2400 c. 24000 d. 22000)

c. 0.178

A person purchases a $5,000 straight note for $4,500. Interest rate on the note is 6%. What was the percentage of profit made on the investment if the note is paid off in one year? (a. 0.067 b. 0.111 c. 0.178 d. 0.06)

b. 0.35

A person sold his home and took back a second trust deed for $3,740. He immediately sold it for $2,431. What was the rate of discount? (a. 0.28 b. 0.35 c. 0.55 d. 0.65)

a. 311 ft.

A piece of property contains 44,000 square feet and is 180 feet deep. There are 2 vacant lots on each side of the property that have the same depth and contain 6,000 square feet each. What is the frontage of the combined lots? (a. 311 ft. b. 320 ft. c. 244 ft. d. 277 ft.)

c. 150000

A property had improvements totaling $200,000; annual net income before recapture of depreciation of $40,000; and economic life of improvements equal to 40 years. Applying the land residual technique using straight line depreciation and an interest rate of 10% results in: (a. 50000 b. 75000 c. 150000 d. 125000)

b. 2000

A property is sold for $125,000. If the lender charges a 2% loan fee for an 80% loan, what is the amount of the fee? (a. 1350 b. 2000 c. 1080 d. None of the above)

c. 750

A property is valued at $195,600 at $5.00 per square foot. If the depth of the lot is 150 feet, what is the value per front foot? (a. 5 b. 260 c. 750 d. Cannot be answered with the amount of information given.)

c. 160000

A property is valued at $200,000 using a capitalization rate of 8%. What would the value of the same property be using a capitalization rate of 10%? (a. 210000 b. 200000 c. 160000 d. 220000)

b. 325000

A property is valued at $260,000 using a capitalization rate of 10%. What would the value of the same property be using a capitalization rate of 8%? (a. 210000 b. 325000 c. 240000 d. 220000)

c. $2.72.

A property is valued at $30,000 and is insured for $24,500 at a rate of 16 cents per $100. The premium for a 3-year policy is 2 1/2 times the premium for 1 year. For a 3-year policy, the monthly cost will be: (a. $3.33. b. $4.00. c. $2.72. d. $2.64.)

b. $3.13.

A property is valued at $35,000 and is insured for $30,000 at a rate of 15 cents per $100. The premium for a 3-year policy is 2-1/2 times the premium for 1 year. For a 3-year policy, the monthly cost will be: (a. $3.33. b. $3.13. c. $2.72. d. $2.64.)

d. 24.75

A property sold for $110,000. Buyer Tom financed 90%. Approximately how much will the monthly PMI increase his payment if the renewal rate is .30%? (a. 20.1 b. 15.41 c. 10.5 d. 24.75)

a. 15500

A property sold for $16,950. This included a profit of 9%. The original cost of the property was approximately: (a. 15500 b. 15400 c. 16000 d. 16500)

b. 1720

A property sold for $19,000 with borrrower assuming a $15,500 first mortgage. Deducting commission of 8% and costs at $260, how much would the seller receive at closing? (a. 3500 b. 1720 c. 17220 d. 13720)

a. 38.5

A property was sold on these terms: Selling price $35,000, $10,000 cash down payment, buyer to deposit proceeds of an $15,000 loan secured by a first trust deed and note, buyer to execute a note in favor of the seller for $10,000 secured by a second deed of trust. What amount of revenue stamps must be purchased prior to the recording of the deed? (a. 38.5 b. 27.5 c. 25.3 d. None required on this transaction)

a. 4

A real estate investor purchased a property for $15,000. He paid $5,000 down and executed a non-interest bearing note for $10,000 in favor of the seller. Before the end of the first year and before he had made any principal payments, he sold the property for double what he paid for it. Each $1.00 of his investment is now worth? (a. 4 b. 9 c. 10 d. 11)

d. $11.00.

A real estate speculator purchased a property for $10,000. He paid $1,000 down and executed a non-interest bearing note for $9,000 in favor of the seller. Before the end of the first year and before he had made any principal payments, he sold the property for double what he paid for it. Each $1.00 of his investment is now worth: (a. $2.00. b. $9.00. c. $10.00. d. $11.00.)

b. 124 ft.

A rectangular lot is 45 feet wide at the street and contains 620 square yards. How deep is the lot? (a. 80 ft. b. 124 ft. c. 115 ft. d. 120 ft.)

b. 108 feet

A rectangular parcel of land has an area of 540 square yards. It has a 45-foot frontage. How deep is the lot? (a. 60 feet b. 108 feet c. 1,080 feet d. 200 yards)

a. 126 feet

A rectangular parcel of land has an area of 770 square yards. It has a 55-foot frontage. How deep is the lot? (a. 126 feet b. 114 feet c. 4,705 feet d. 6,930 yards)

a. 220 feet.

A rectangular-shaped building that is 45 feet wide and 65 feet long has a perimeter of: (a. 220 feet. b. 220 square feet. c. 2,925 feet. d. 2,925 square feet.)

a. 20 feet

A road comprising a total of 3 acres runs along the southern boundary of a section. Of the following, which is most nearly the width of the road? (a. 20 feet b. 30 feet c. 40 feet d. 50 feet)

c. 40 feet

A road comprising a total of 5 acres runs along the northern boundary of a section. Which is most nearly the width of the road? (a. 20 feet b. 30 feet c. 40 feet d. 50 feet)

a. 17 feet.

A road runs across the entire northern boundary of a section of land. The road contains two acres of land. The approximate width of the road would be: (a. 17 feet. b. 20 feet. c. 30 feet. d. 40 feet.)

a. 1584

A salesperson has a 60/40 split with the broker. If the commission for the sales is 6% to be split between the brokers, what is the salesperson's 40% commission on a $132,000 sale? (a. 1584 b. 3960 c. 7920 d. 3168)

a. 142000

A single-family residence has an estimated value by the sales comparison approach of $142,000. Its value by the cost approach is $139,500 and by the income capitalization approach, $125,000. Which value will probably be your final estimate of value? (a. 142000 b. 139500 c. 125000 d. 135500)

c. 48400

A small income property generates a monthly gross income of $600. Over the last five years it has been vacant for three months. The annual expenses are $2,000. If an appraiser applied a 10% capitalization rate to this property, what would be the value? (a. 58000 b. 65000 c. 48400 d. 90000)

a. Increase

A subdivider purchased 10 acres for $200,000 with a 10% down payment. The balance was to be in the form of a straight note secured by a deed of trust. The deed of trust contained a release clause providing that, upon each payment of $20,000, one acre would be released free and clear. The subdivider subsequently paid $40,000 on the principal and received a release on two acres of land free and clear. By this transaction, the percentage of his equity in the encumbered property would do which of the following? (a. Increase b. Decrease c. Stay the same d. Decrease when the first four lots were released and increase when the last six are released)

b. 4,800 square feet

A triangular-shaped lot has a road frontage (base) of 80 feet and a depth of 120 feet. What is the area of the lot? (a. 277 square feet b. 4,800 square feet c. 9,600 square feet d. none of these)

c. 25%.

Alfred bought a piece of property for 20% less than the listed price. He later sold it for the listed price. His gain was: (a. 10%. b. 20%. c. 25%. d. none of the above)

b. 0.08

An apartment building cost $450,000. It brings in a net income of $3,000 per month. The owner is making what percentage of return on the investment? (a. 0.07 b. 0.08 c. 0.11 d. 0.13)

c. 213889

An apartment building is valued at $275,000 using a 7% capitalization rate. How much would an investor pay for the property if she demanded a 9% capitalization rate? (a. 250000 b. 225000 c. 213889 d. 300000)

d. 40000

An apartment house has 100,000 square feet of floor space. If the owner has 60% of the floor space covered with carpeting at a cost of $6.00 per square yard, his approximate cost would be: (a. 6000 b. 10000 c. 20000 d. 40000)

c. $60,000, the value of the land

An apartment was purchased for $175,000. The terms of purchase were $125,000 cash, and a purchase money deed of trust for the balance. The land was valued at $60,000. What would the adjusted cost basis of the property be after it is fully depreciated? (a. The remaining balance on the purchase money deed of trust b. $115,000, the value of the improvements c. $60,000, the value of the land d. It would have no adjusted cost basis as it is fully depreciated)

a. 110000

An apartment's financial statement disclosed the following: Gross income = $20,000; vacancy factor = 9%; operating expenses = $5,000; payments to amortize the existing 1st and 2nd deeds of trust = $300 monthly. Using a 12% capitalization rate, what is the value of the property? (a. 110000 b. 20000 c. 60000 d. 100000)

a. 50000

An apartment's financial statement discloses the following: (1) gross income-$10,000; (2) vacancy factor-10%; (3) operating expenses-$4,000; (4) payments to amortize the existing 1st and 2nd deeds of trust-$250 monthly. Using a 10% capitalization rate, what is the value of the property? (a. 50000 b. 20000 c. 60000 d. 100000)

c. 300000

An income property has a net income of $40,000. How much value would be lost if the current capitalization rate in the area changed from 5% to 8%? (a. 100000 b. 10000 c. 300000 d. None of the above)

c. 320000

An income property has a value of $400,000 and returns a net of 8% to its owner. What would the value of this property be to a new purchaser who wished to receive an 10% return on his money? (a. 200000 b. 266667 c. 320000 d. 160000)

b. 16 months.

An individual borrowed $9,000 on a straight note and an interest of 7%. If the total interest paid on the note totaled $840.00, the term of the loan was: (a. 14 months. b. 16 months. c. 18 months. d. 20 months.)

c. 3200

An individual sold his property for $35,200 and realized a 10% profit over what he paid for it. His profit was: (a. 3520 b. 3811 c. 3200 d. 3872)

c. 3637

An individual sold his property for $40,000 and realized a 10% profit over what he paid for it. His profit was: (a. 3520 b. 3811 c. 3637 d. 3872)

b. 202

An investor paid $18,900 for a lot that had an area of 22,500 sq. ft. and was 160 ft. deep. The lot was sold and a 35% profit was made after paying a 10% brokers commission. At what price per front foot did the lot sell? (a. 155 b. 202 c. 177 d. 181)

c. $4.60.

An investor purchased a home for $144,000, with a $40,000 down payment and financing the balance with $104,000 straight note. The investor then sold the property for double the purchase price. If the investor had made no principal or interest payments on the loan, each dollar invested would now be worth: (a. $2.20. b. $4.00. c. $4.60. d. $6.60.)

d. 1500000

An investor wants to purchase a 60-unit apartment building that has an annual net income of $180,000. How much would he be willing to pay for the building if he uses a 12% capitalization rate? (a. 1400000 b. 1650000 c. 1985000 d. 1500000)

d. 107

An offer said, "Seller to take back a second mortgage securing the note for $12,400, payable at $200.00 or more per month, including interest at 9% per annum from May 15, 1989." If the first payment date on the second mortgage is June 15, 1989, how much of the regular payment will go to principal reduction? (a. 80 b. 173.5 c. 184.5 d. 107)

c. 1072

An owner of a home listed it at a price which would leave him $16,800 after the broker received a 6% commission. If the broker sold the property at the listed price, how much commission would he receive? (a. 1088 b. 1193 c. 1072 d. 1064)

c. 1200

An owner of a home listed it at a price which would leave him $18,800 after the broker had received a 6% commission. If the broker sold the property at the listed price, how much commission would he receive? (a. 1088 b. 1193 c. 1200 d. 1064)

b. 67800

Angie owns a single family home which rents for $600 per month. A home across the street rents for $690 per month and recently sold for $78,000. If Angie applied the same gross rent multiplier to her home as was used on the home across the street, what would be the value of Angie's home? (a. 50000 b. 67800 c. 69565 d. 70909)

b. 0.06

Assume Mr. Kelly owns his home and borrowed money to buy it with a loan payable at $114.63 per month. The balance on the loan for the last month was $16,500. $32.13 was applied on his principle on his last payment. What was the interest rate on the note in these circumstances? (a. 0.166 b. 0.06 c. 0.0525 d. 0.092)

b. 0.06

Assume Mr. Kelly owns his home but he borrowed money to buy it with a loan payable at $114.63 per month. The balance on the loan for the last month was $16,500. $32.13 was applied on his principle on his last payment. What was the interest rate on the note in these circumstances? (a. 0.166 b. 0.06 c. 0.0525 d. 0.092)

b. 6%.

Assume Mr. Willis owns his home but he borrowed money to buy it with a loan payable at $112.44 per month. The balance on the loan for the last month was $16,000. $32.44 was applied on his principle on his last payment. What was the interest rate on the note in these circumstances? (a. 0.166 b. 6%. c. 5-1/4% d. 0.092)

a. 24

Assume a second trust deed has a face amount of $4,000, payable $65 a month plus 7.2% interest per year. What would be the amount of the interest due on the first monthly payment? (a. 24 b. 28.2 c. 288 d. 65)

c. 41

Assume a second trust deed has a face amount of $6,000, payable at $75 a month plus 8.2% interest per year. What would be the amount of the interest due on the first monthly payment? (a. 24 b. 28.2 c. 41 d. 65)

c. 11250

Assume it would cost $12,500 to reproduce an improvement today. Assume the land is valued at $1,000 today. Assume the improvement is actually 12 years old. The depreciation rate is 1-1/2%. Using the above facts, what is the depreciated value today? (a. 10250 b. 10750 c. 11250 d. None of the above)

d. 13550

Assume it would cost $16,500 to reproduce an improvement today. The land is valued at $2,000 today. Assuming the improvement is actually 12 years old and the depreciation rate is 2-1/2%, what is the depreciated value today? (a. 10250 b. 10750 c. 11550 d. 13550)

c. 88200

Assume that the original value of a property was $122,500, with the land valued at $24,500. If the economic life of the improvement was estimated to be 40 years using the straight line approach, what was the book value of the property after 14 years? (a. 34300 b. 63700 c. 88200 d. 98000)

d. 7000

Assuming that the real property taxes on an income property increased $700 per year and all other expenses and income remained the same. The value of the property would decrease by which of the following amounts if you used a capitalization rate of 10%? (a. 7 b. 70 c. 700 d. 7000)

b. 5

Atilla bought a parcel of land measuring 110 yards by 220 yards. How many acres are in this parcel? (a. 2.5 b. 5 c. 10 d. 20)

b. 5 acres

Attila bought a parcel of land measuring 110 yards by 220 yards. How many acres are in this parcel? (a. 2.5 acres b. 5 acres c. 10 acres d. 20 acres)

c. 799

Ben sold two parcels of land for $9,775 which was 15% higher than their cost four years ago. While Ben owned the parcels, he paid taxes each year at a rate of $7.00 per $100 on an assessed value of 30% of the purchase price. Assuming an annual loss of 4% imputed interest on Ben's original investment as an expense, how much did Ben lose on the transaction? (a. 650 b. 885 c. 799 d. None of the above)

b. 25

Bert purchased a property for 20% less than the listed price and later, he sold the property for the original listed price. What percentage profit did he make? (a. 20 b. 25 c. 35 d. 45)

c. 160000

Bill paid $200,000 for some income units. If the ratio of the land to improvements is 1 to 4 (1:4), for income tax purposes, which of the following most nearly reflects the depreciable amount of the property? (a. 40000 b. 80000 c. 160000 d. 200000)

d. 156

Bill sold a parcel of land for $15,600, which was 25% more than he paid for it. The parcel was described as the S 1/2 of the NE 1/4 of Section 9. The price he paid per acre was: (a. 70 b. 100 c. 180 d. 156)

c. 160869

Bill sold his office building for $185,000. This was 15% more than what he paid for it. His original cost was approximately: (a. 212750 b. 157250 c. 160869 d. there is insufficient information to arrive at an answer)

c. 32000

Billy divided an acre of land into four lots. He then sold the lots for $10,000 each. If his cost basis on each lot was $2,000, what was his total gain on the sale of the lots? (a. 8000 b. 10000 c. 32000 d. 40000)

a. 100000

Bob bought a parcel of raw land and subdivided it into four separate lots. Five years later, he sold each lot for $50,000. The adjusted basis for each lot was $25,000. Bob's long-term capital gain on these transactions is: (a. 100000 b. 320000 c. 400000 d. 500000)

c. 5% but less than 6%

Bob has a loan for $16,000 with interest to be paid at the rate of $200 quarterly. What is the interest rate on the loan? (a. 3% but less than 4% b. 4% but less than 5% c. 5% but less than 6% d. 6% but less than 7%)

d. 21063

Bob owns a home, which is free and clear. He recently purchased a new home. The contract to purchase the new home however, has a contingency that Bob's current home be sold within 60 days and that Bob net $19,500 from the sale after all expenses have been deducted. Bob employs broker Jones to assist him in the sale of the property. The broker is to receive a 6% commission and there will be an escrow fee of $300. How much must the home in Irvine sell for in order to net Bob $19,500? (a. 19916 b. 19928 c. 20000 d. 21063)

d. 5250

Bob took a listing providing for a 6% commission on the sales price of $210,000. Sue made an offer at the listed price, but did not complete the transaction. The seller declared a forfeiture of the 5% deposit. A provision in the purchase agreement provides that the broker will receive half of the buyer's deposit in the event of the buyer's default. Under these circumstances, the broker is entitled to: (a. 10500 b. 12600 c. 6300 d. 5250)

d. 200000

Brad bought a parcel of land and subdivided it into four separate lots. Five years later, he sold each lot for $75,000. The adjusted basis for each lot was $25,000. Brad's capital gain on these transactions is: (a. 80000 b. 320000 c. 400000 d. 200000)

b. 25220

Broker Bob leased a commercial property for 30 years at a rent of $26,000 per year. His commission was 9% of the first year rent, 7% of the rent for years 2 through 5, 4% of the rent for years 6 through 10, and 2% of the rent for years 11 through 30. Assuming all the commission is paid to him as per this schedule, what is the total commission he will receive? (a. 5000 b. 25220 c. 10500 d. 20500)

a. 8500

Broker Bob listed a home for sale for $200,000. He presented the seller with an offer which was 15% less than the listed price. The seller said he would accept the offer if the Broker Bob agreed to reduce her 6% commission by 16-2/3%. If Broker Bob agreed, how much commission would he receive? (a. 8500 b. 10000 c. 9180 d. 10800)

c. 2025

Broker John and Broker Jay agreed to divide a 4 1/2% commission equally on the sale of a home, which sold for $180,000. Sue, the listing salesperson, works for Broker John on a 50-50 commission split. Sue would receive approximately how much commission as a result of the sale? (a. 1828 b. 2828 c. 2025 d. 7312)