REAL ESTATE MATH
What is the perimeter of a rectangle with a length of 20ft and a width of 10ft? a. 50ft b. 40ft c. 20ft d. 60ft
ANSWER: note* formula is (2 x length) + (2 x width) (2 x 20ft) + (2 x 10ft)= 60ft
How many acres is one hectare equal to? a. 2.47 acres b. 3.50 acres c. 4 acres d. 2.75 acres
ANSWER: a
How many feet are in a yard? a. 3ft b. 2ft c. 4.5ft d. 1ft
ANSWER: a
One meter is equal to how many inches? a. 39.37in b. 37.35in c. 38in d. 39in
ANSWER: a
What is the formula for calculating prorations using a calendar year (365-days)? a. price/ 365-days b. price x 365- days/ 12 months c. price - 365-days d. none of the above
ANSWER: a
What is the formula for determining an origination fee ($) on a loan? a. loan amount x origination % b. loan amount/ origination % c. loan amount + origination % d. none of the above
ANSWER: a
What is the formula for finding commission? a. sales price x commission rate b. sales price/ 6 c. sales price x .10 d. none of the above
ANSWER: a
What is the formula for finding the acerage of a property? a. property size (sqft)/ 43,560sqft b. property size (sqft)/ 150 c. property size (acres)/ 2.47 acres d. none of the above
ANSWER: a
What is the formula for finding the amount of appreciation in dollars on a property? a. original value x appreciation rate b. original loan value/ appreciation rate c. original loan value + appreciation rate d. none of the above
ANSWER: a
What is the formula for finding the area of a triangle? a. (0.5 x base ) x height b. side x side c. length x width d. none of the above
ANSWER: a
What is the formula for finding the interest rate on a property assuming you know the cost of annual interest and the loan balance? a. annual interest/ loan balance b. annual interest x loan balance c. loan balance - annual interest d. none of the above?
ANSWER: a
What is the formula for finding the perimeter of a rectangle? a. (2 x length) + (2 x width) b. 4 x length c. (3 x length) + width d. none of the above
ANSWER: a
What is the formula for finding total debt-to-income ratio? a. monthly debt obligations/ monthly gross income b. monthly debt obligations X monthly gross income c. monthly debt obligations - monthly gross income d. none of the above
ANSWER: a
what is the formula for mortgage recording tax? a. mortgage amount x tax rate b. mortgage amount/tax rate c. mortgage amount - tax rate d. none of the above
ANSWER: a
What is the perimeter of a square with a length of 14ft? a. 56ft b. 42ft c. 60ft d. 70ft
ANSWER: a note* formula is (4 x length) (4 x 14ft)= 56ft
A seller paid taxes of $2,920 for the entire year on January 1, then sold the property, closing on April 10. Assume a calendar-year method (non-leap year) and that the seller owns the day of closing. The buyer needs to pay the seller for the taxes already paid for the days the seller won't own the property during the year. How much does the buyer owe? a. $2,120 b. $2,210 c. $800 d. $2,000
ANSWER: a note* $2,920/ 365= $8 seller held for 100 days 100 x $8= $800 buyer will hold for 265 days 265 x $8= $2,120 buyer owes $2,120 to seller
A borrower has a 30-year, $500,000 loan with an interest rate of 6.25%. His monthly principal and interest payment is $3,078.59. What's the total amount he'll pay over the life of the loan? a. $1,108,292.40 b. $500,000 c. $608,292.40 d. $750,000
ANSWER: a note* $3,078.59 x 12= $36,943.08 $36,943.08 x 30= $1,108,292.40
A buyer has a 30-year, $400,000 loan with a 7% interest rate. How much of the first month's mortgage payment is interest? a. $2,333.33 b. $28,000 c. $3,100 d. $933.33
ANSWER: a note* $400,000 × 0.07 = $28,000; then $28,000 ÷ 12 = $2,333.33
Your buyer client Heather just signed a purchase agreement for a $520,000 home. The LTVR is 60%. How much is Heather putting down on the purchase? a. $208,000 b. $220,000 c. $300,000 d. $312,000
ANSWER: a note* A 60% LTVR means that Heather is financing 60% of her purchase and putting down 40%. Forty percent of $520,000 is $208,000 ($520,000 x 0.40).
Phyllis bought a beach townhouse for $475,000 and put down $50,000 in earnest money. At closing, she paid $150,000, the balance of her intended down payment. The mortgage tax in the area is $.35 per $100 (or portion thereof). Calculate what Phyllis will pay for the mortgage tax. a. $1,137.50 b. $1,662.50 c. $700 d. $962.50
ANSWER: a note* A mortgage recording tax is based on the loan amount. Phyllis will pay a mortgage tax amount of $962.50 on her loan amount ($275,000 x .0035).
A buyer is purchasing a property for $400,000. His loan-to-value ratio is 80%. The lender also charges a one-point loan origination fee. How much is the loan origination fee? a. $3,200 b. $3,600 c. $4,000 d. $800
ANSWER: a note* An 80% LTV ratio means the buyer is financing 80% of the purchase price. Eighty percent of the purchase price is $320,000, and one point, or 1%, of this amount is $3,200.
A seller client received $800,000 for a 5.5 acre rectangular parcel alongside a road frontage. If the property was 400' deep, what was the price per front foot of the property? a. $1335.67 b. $2,000.00 c. $598.95 d. $363.64
ANSWER: a note* First, find the square footage (5.5 x 43,560 = 239,580). Then, 239,580 ÷ 400' = 598.95 front feet. To find the price per front foot, $800,000 ÷ 598.95' = $1,335.67 per front foot.
A real estate transaction has a closing date of May 20. The seller, who's responsible for closing costs up to but not including the day of closing, has already paid annual property taxes of $1,949. How will the closing statement reflect the proration for the seller? Use a calendar year proration, and round to the nearest dollar. a. Credited $1,207 b. Credited $742 c. Debited $1,207 d. Debited $742
ANSWER: a note* The seller is required to cover the property taxes for January 1 through May 19, which is 139 days. The seller will be credited $1,207, because $1,949 ÷ 365 = $5.34, and $5.34 × 226 days (the number of days the buyer will own the property and have to cover property taxes) = $1,206.84. That's $1,207 when rounded to the nearest whole dollar.
If a home's assessed value is $325,000 and the tax rate is 1.25%, what is the annual property tax amount? a. $4,062.50 b. $4,000.75 c. $3,780.25 d. $$2,100.00
ANSWER: a note* the formula for annual property tax is assessed property value x tax rate ($325,000 x 1.25% (0.0125))= $4,062.50
what is the current loan balance on a property if $15,000 is paid toward annual interest on a loan with a 7.5% interest rate? a. $200,000 b. $320,000 c. $190,000 d. $275,000
ANSWER: a note* the formula for current loan balance is annual interest/ interest rate ($15,000/ 0.075 (7.5%))= $200,000
What is the commission rate on a property if it sold for $120,000 and you earned a total commission of $6,000? a. 5% (0.05) b. 6% (0.06) c. 10% (0.10) d. 3% (0.03)
ANSWER: a note* the formula for finding commission rate is (total commission earned/ sales price) ($6,000/ $120,000)= 0.05 (5%)
If a lot has 10 acres, how many hectares is it? a. 4.05 hectares b. 2.47 hectares c. 8 hectares d. non of the above
ANSWER: a note* the formula for finding hectares is property size (acres)/ 2.47 acres 10 acres/ 2.47 acres = 4.05 hectares
What is the sale price of a property if the commission rate was 4.5% and the total commission earned was $18,000? a. $400,000 b. $375,000 c. $200,000 d. $450,000
ANSWER: a note* the formula for finding sale price based on commission rate and total commission earned is (total commission earned/ commission rate ($18,000/ 4.5% (0.045)= $400,000
What is the area of a triangle with a height of 70ft and a base of 60ft? a. 2,100sqft b. 4,200sqft c. 130sqft d. 4000sqft
ANSWER: a note* the formula for the area of a triangle is (0.5 x base) x height (0.5 x 60ft) x 70ft= 2,100sqft
How many feet are in one square yard? a. 13ft b. 9ft c. 10ft d. 16ft
ANSWER: b
What formula is used to determine annual property tax? a. assessed property value/ tax rate b. assessed property value x tax rate c. assessed property value- tax rate d. none of the above
ANSWER: b
What is the formula for calculating proration using a 360-day statutory year (bankers year)? a. 30 days + 12 months b. 30 days x 12 months c. 30 days/ 12 months d. none of the above
ANSWER: b
What is the formula for determining a loan-to-value ratio? a. loan amount x home value b. loan amount/ home value c. home value/ loan amount d. none of the above
ANSWER: b
What is the formula for finding how much points will cost in dollars? a. loan amount/ points (%) b. loan amount x points (%) c. loan amount - points (%) d. none of the above
ANSWER: b
What is the formula for finding the area of a square? a. length x width b. side x side c. (0.5 x base) x height d. none of the above
ANSWER: b
What is the formula for finding the perimeter of a square? a. 2.5 x length b. 4 x length c. 3 x length d. none of the above
ANSWER: b
What is the formula for finding the sale price of a property assuming you know the total commission earned and the commission rate? a. commission rate x total commission earned b. total commission earned/ commission rate c. total commission earned x 100 d. none of the above
ANSWER: b
A seller paid taxes of $3,000 for the entire year on January 1, then sold the property, closing on June 1. Assume you are using a statutory year, who owes whom? a. seller owes the buyer $1,750 b. buyer owes the seller $1,750 c. seller owes the buyer $1,375 d. buyer owes the seller $1,375
ANSWER: b note* $3,000/ 12 months= $250mo seller had the house for 5 months $250 x 5 months= $1,250 the buyer will have the property for the remaining 7 months $250 x 7 months= $1,750 the buyer owes the seller $1,750
The real estate taxes assessed on the property are $785 for the year. The taxes aren't due until the following January 1. Closing is held on May 31. How much will the seller's debit be at closing? a. $237.01 b. $327.10 c. $315.96 d. $723.11
ANSWER: b note* $785/ 12 months= 65.42 jan 1- may 31= 5 months $65.42 x 5= $327.10
Assume you split your commission of $15,000 with a real estate firm. You get to keep 60% and the firm gets 40%. How much do you keep? a. $6,000 b. $9,000 c. $15,000 d. $10,000
ANSWER: b note* ($15,000 x 0.6)= $9,000
Lenore makes a 95% offer on a townhouse that's listed at $285,000 and includes an earnest money deposit for 10% of her offer, which the seller accepts. She brings to closing a cashier's check for $35,025 comprising the balance of her 20% down payment and closing costs. What's the amount of her total down payment? a. $35,025 b. $54,150 c. $57,000 d. $62,100
ANSWER: b note* 285,000 x .95= 270,750 270,750 x .20= 54,150
Residents of Tinytown have been complaining to town officials that the village-like character of their town is being affected by the medium-rise condos that developers are building on the edge of town. In response, local government officials rezoned the areas on the edges of town as parklands. What type of zoning is this? a. Aesthetic zoning b. Downzoning c. Incentive zoning d. Spot zoning
ANSWER: b note* Downzoning assigns a lower density use to an area that previously allowed a higher density.
Joyce just closed on a condo for $366,900. She put down 20% to obtain an 80% loan and avoid having to pay for private mortgage insurance. How much equity does she have in her condo? a. $293,520 b. $73,380 c. $220,140 d. $146,760
ANSWER: b note* Joyce's equity is $73,380. She bought the condo for $366,900 and put down 20%, or $73,380 ($366,900 × .20). Because she just closed, her equity is the same as her down payment.
Lenore makes a 95% offer on a townhouse that's listed at $285,000 and includes an earnest money deposit for 10% of her offer, which the seller accepts. She brings to closing a cashier's check for $35,025 comprising the balance of her 20% down payment and closing costs. What's the amount of her total down payment? a. $62,100 b. $54,150 c. $35,025 d. $57,000
ANSWER: b note* Lenore's offer is $270,750 ($285,000 × .95). Her total down payment is 20% of her accepted offer, or $54,150 ($270,750 × .2).
Bonnie is calculating the square footage of a listing. The upper level of the home is 450 square feet. The main floor is 1,200 square feet, including an unfinished laundry area that's 225 square feet. The 1,200-square-foot basement is finished. Bonnie's MLS system disregards below-grade square footage. What square footage will Bonnie mention in her MLS listing and marketing materials? a. 2,400 b. 1,425 c. 2,850 d. 1,200
ANSWER: b note* Only finished above-ground space should be counted in Bonnie's MLS listing. That means the square footage of the upper floor plus the main floor (minus the unfinished laundry area). Bonnie should report 1,425 square feet (450 + 1,200 - 225).
Your clients are looking at buying a $200,000 property with a 30-year loan at a 5% interest rate. If the amortization factor is 5.36822, how much would their principal and interest payment be per month? Remember: The monthly payment multiplier is per $1,000 of the mortgage. a. $1,001.32 b. $1,073.64 c. $1,296.21 d. $1.347.91
ANSWER: b note* The estimated payment is $1,073.64. Remember to divide $200,000 by 1,000, then multiply the factor (5.36822) by 200. .;
Phoebe's gross monthly income is $4,200, and she has $360 in monthly non-housing debt payments. The lender's qualifying ratios are 28% for the housing ratio and 36% for the total DTI ratio. What's the maximum housing payment she can afford? a. $1,075 b. $1,152 c. $1,176 d. $1,512
ANSWER: b note* The maximum house payment is the lesser of the amounts calculated using both ratios. DTI: $4,200 x .36 = $1,512. $1,512 - $360 = $1,152. Housing ratio: $4,200 x .28 = $1,176. Phoebe's maximum payment is $1,152.
A 4-bedroom, 4-bath 4,875 square feet house was listed at $445,000. Andreas, the seller, accepted an offer that was 95% of the listing price. What price per square foot did he get for the house? a. $91.28 b. $86.72 c. $82.15 d. $45.64
ANSWER: b note* The price per square foot = price ÷ area. So first, find the sale price. $445,000 x .95 = $422,750. Then, to find the price per square foot, $422,750 ÷ 4,875 sq. ft = $86.72 per sq. ft.
Alistair bought a townhouse for $285,900. He got a 90% loan and the lender charged him 3-1/2 discount points. How much did Alistair pay in discount points? a. $1,000.65 b. $9,005.85 c. $10,006.50 d. $9,585.00
ANSWER: b note* The sales price is $285,900, and 90% of that (aka our loan amount) is $257,310. The discount amount is 3-1/2 points, (.035) multiplied by $257,310 = $9,005.85.
Market factors indicate that a new parcel of land valued at $40,000 is going to depreciate in value by 3.5% over the next year. What will its new value be after one year? a. $30,000 b. $38,600 c. $37,500 d. $39,000
ANSWER: b note* the formula for depreciation is original value x value NOT lost ($40,000 x 96.5% (0.965))= $38,600
If a lot has an area of 30,000sqft, how many acres is it? a. 200 acres b. 0.69 acres c. 1 acre d. none of the above
ANSWER: b note* the formula for finding acerage is property size (sqft)/ 43,560sqft (30,000sqft/43,560sqft)= 0.69 acres
A 2,100sqft home just sold for $150,000. What is the price per sqft? a. $75.00 b. $71.43 c. $50.47 d. $70.00
ANSWER: b note* the formula for finding price per sqft is sale price/ area $150,000/ 2,100sqft = $71.43
A buyer anticipates monthly housing expenses of $1,500 and has a gross income of $4,000. What is their housing ratio? a. 37% housing ratio b. 37.5% housing ratio c. 40% housing ratio d. 35% housing ratio
ANSWER: b note* the formula for housing ratio is monthly housing expenses/ monthly gross income ($1,500/ $4000)= 0.375 (37.5% housing ratio)
How much will a homeowner pay annually in interest on a $275,000 loan with a 4.75% interest rate? a. $12,000.43 b. $13,062.50 c. $15,000.82 d. $13,500.37
ANSWER: b note* the formula of annual interest is loan balance x interest rate ($275,000 x 4.75% (0.0475))= $13,062.50
A property assessed at $80,000 pays a tax rate of 100 mills. What does the owner pay in taxes? a. $7,900 b. $8,000 c. $8,500 d. $8,375
ANSWER: b note* the formula tax per mill is assessed value/ 1,000 ($80,000/ 1,000)= $80 per mill ($80 x 100 mills)= $8,000 in annual taxes
A 1% loan origination fee will be due at closing on a $125,000 loan. What is the amount of the origination fee? a. $1,300 b. $1,250 c. $1,275 d. $1,000
ANSWER: b note* the formula to find origination fees is loan amount x origination % ($125,000 x 1% (0.01))= $1,250
A seller paid taxes of $3,000 for the entire year on January 1, then sold the property, closing on June 1. Who owes what to whom? a. The seller paid the full year's taxes but used the property for only five months (January through May). Neither the seller or buyer need to pay for the taxes already paid for the months the seller won't own the property during the year b. The seller paid the full year's taxes but used the property for only five months (January through May). The seller needs to pay the buyer for the taxes already paid for the months the seller won't own the property during the year c. The seller paid the full year's taxes but used the property for only five months (January through May). The buyer needs to pay the seller for the taxes already paid for the months the seller won't own the property during the year d. none of the above
ANSWER: c
How do you find the area of an irregular shape? a. find all the sides and add them together b. length x width x height c. divide the shape into squares, rectangles, and triangles. Find the area of each separate shape and add the area of the separate shapes together. d. divide the shape into squares, rectangles, and triangles. Find the area of each separate shape and multiply the area of the separate shapes together.
ANSWER: c
How many inches are in one square foot? a. 160in b. 130in c. 144in d. 100in
ANSWER: c
How many square feet are in one acre? a. 43,580sqft b. 40,600sqft c. 43,560sqft d. 42,350sqft
ANSWER: c
One square mile (one section) is equal to which of the following? a. 600 acres b. 457 acres c. 640 acres d. 575 acres
ANSWER: c
What is the formula for a seller's net earnings? a. sales price - % commission b. sales price/ (100% - % comission) c. sales price x (100% - % commission) d. none of the above
ANSWER: c
What is the formula for annual interest? a. loan balance + interest rate b. loan balance/ interest rate c. loan balance x interest rate d. none of the above
ANSWER: c
What is the formula for determining housing ratio? a. monthly housing expenses + monthly gross income b. monthly housing expenses x monthly gross income c. monthly housing expenses/ monthly gross income d. none of the above
ANSWER: c
What is the formula for finding a loan balance assuming you know the annual interest paid and the interest rate? a. annual interest - interest rate b. interest rate x annual interest c. annual interest/ interest rate d. none of the above
ANSWER: c
What is the formula for finding depreciation? a. original value x value lost (%) b. original value/ value NOT lost (%) c. original value x value NOT lost (%) d. none of the above
ANSWER: c
What is the formula for finding the area of a rectangle? a. side x side b. (0.5 x base) x height c. length x width d. none of the above
ANSWER: c
What is the formula for finding the hectares of a property? a. property size (sqft)/ 43,560sqft b. property size (sqft)/ 150 c. property size (acres)/ 2.47 acres d. non of the above
ANSWER: c
What is the formula for finding the perimeter of any shape other than a square or rectangle? a. (2 x length) + (2 x width) b. 2 x width c. add the lengths of each side d. none of the above
ANSWER: c
What is the formula for property tax per mill ($)? a. assessed value x 1,000 b. assessed value/ 100 c. assessed property value/ 1,000 d. none of the above
ANSWER: c
What is the length of a rod? a. 15ft b. 12ft c. 16.5ft d. 15.6ft
ANSWER: c
A seller prepaid $565 for a security system, which the buyer intends to take over. Expenses are prorated through August 2, the day of closing. The proration will be calculated on a 360-day basis (the buyer owes the seller for the period between August 2 and December 31). What will the buyer's debit be upon closing? a. $225.46 b. $237.87 c. $232.21 d. $223.61
ANSWER: c note* $565/ 360= $1.569 per day 28 days in aug, and 30 in sep and dec.= 148 days 148 x $1.569= $232.21 buyers debit will be $232.21
The lender will charge a one-and-a-half-point origination fee and two loan discount points. What will be the total due for points on a $115,000 loan? a. $1,725 b. $2,300 c. $4,025 d. $575
ANSWER: c note* A point is 1% of the loan amount. Three-and-a-half points (one-and-a-half and two) is 3.5% of $115,000, or $115,000 x .035 = $4,025.
Jared has a 70/30 split with his brokerage firm, and his firm has a 50/50 split with cooperating brokerages. Last month, he was paid $12,239.50 in commissions from his home sales, which totaled $538,000. Assuming every transaction for the month was shared with a cooperating brokerage, what is Jared's brokerage's commission rate? a. 2.3% b. 3.8% c. 6.5% d. 7.6%
ANSWER: c note* Jared was paid $12,239.50, which is 70% of the amount paid to his broker as commission. That makes his firm's commission $12,239.50 ÷ .70 = $17,485. Multiply that by two for the total commission the firm grossed, since it's shared 50/50 with a cooperating brokerage (the brokerage that brings the buyer to the sale), giving you $34,970. Then divide by the total sales amount for the brokerage's commission rate: $34,970 ÷ $538,000 = 0.065, or 6.5%.
The Walton family got a great deal on their new home. They bought it for $101,295, and it appraised at $187,000. Using an assessment ratio of 25%, what is the assessed value of their new home? a. $21,246 b. $25,323 c. $46,750 d. $52,753
ANSWER: c note* The assessed value is based on the appraised value of the home. So while the amount their home appraised for was significantly higher than what they bought it for, they'll only be taxed on 25% of it. In this case, $187,000 × 0.25 = $46,750.
Using the capitalization formula, what is the value if the net operating income is $20,000 and the rate of capitalization is 10%? a. $2,000 b. $20,000 c. $200,000 d. $2 million
ANSWER: c note* The formula is value = income divided by rate of capitalization or $20,000 / .10 = $200,000.
A seller wants to net $10,000 after the broker's commission of 6% and a loan balance of $250,000 are paid. For how much does the property need to sell? a. $650,000 b. $265,957 c. $276,596 d. $250,000
ANSWER: c note* The property will need to sell for $276,596 for the sellers to net $10,000 after paying what they still own on the loan and the commission fee to the broker. To calculate this, start with 100% minus a 6% commission, which is 94% (.94). Then take the loan balance of $250,000 plus the $10,000 they want to net ($260,000) and divide this amount by .94 ($260,000 ÷ .94 = $276,596).
It's 12,280 feet from Missy's house to the nearest coffee shop. Approximately how far is this? a. Just over a mile b. Just over half a mile c. Just over two miles d. Just under a mile
ANSWER: c note* one mile is equal to 5,280ft
A buyer has total monthly debt obligations of $1,000 and a gross income of $3,500. What is their debt-to-income ratio? a. 28% DTI b. 30% DTI c. 28.6% DTI d. 27.5% DTI
ANSWER: c note* the formula for Monthly debt-to-income ratio is monthly debt obligations/ monthly gross income ($1,000/ $3,500)= 0.286 (28.6% total DTI)
You just sold a home for $300,000. the commission rate is 5%. What is the total commission earned? a. $285,000 b. $6,000,000 c. $15,000 d. $10,000
ANSWER: c note* the formula for finding commission rate is sale price x commission rate (remember to convert to decimal) ($300,000 x 0.05)= $15,000
A buyer must pay 4 points at closing on a $100,000 home loan. How much will the 4 points cost them? a. $10,000 b. $25,000 c. $4,000 d. $2,500
ANSWER: c note* the formula for how much points will cost in dollars is loan amount x points (%) ($100,000 x 4% (0.04))= $4,000
An institution will lend up to $112,500 for a property appraised at $125,000. what is the loan-to-value ratio? a. 72% LTV b. 86% LTV c. 90% LTV d. 91% LTV
ANSWER: c note* the formula for loan-to-value ratio is loan amount/ home value ($112,500/ $125,000)= 0.9 (90% LTV)
The mortgage recording tax rate for a $325,000 home is $2.75 per $100 mortgaged. If the principal amount of the mortgage is $200,000, what is the recording tax amount? a. $5,000 b. $5,350 c. $5,500 d. $6,000
ANSWER: c note* the formula for mortgage recording tax is mortgage amount x tax rate rate= $2.75/ $100= 0.0275 ($200,000 x 0.0275)= $5,500
What is the area of a rectangle with a length of 24ft and a width of 17ft? a. 82sqft b. 400sqft c. 408sqft d. 600sqft
ANSWER: c note* the formula for the area of a rectangle is (length x width) (24ft x 17ft) = 408sqft
How many feet are in one mile? a. 5,000ft b. 5,300ft c. 4,860ft d. 5,280ft
ANSWER: d
What is the formula for determining the commission rate on a property assuming you know the sale price and the total commission earned? a. total commission earned x sale price b. sale price - total commission earned c. total commission earned + sale price d. total commission earned/ sale price
ANSWER: d
What is the formula for finding price per sqft? a. sales price/ 43,560sqft b. sales price/ 100sqft c. sales price/ perimeter d. sales price/ area
ANSWER: d
What percentage is one point equivalent to? a. .15% b. .50% c. 1.75% d. 1%
ANSWER: d
A property valued at $225,000 today is expected to appreciate 2% each year. by how much would the property's value increase after one year? a. $2,250 b.$3,700 c. $4,000 d. $4,500
ANSWER: d note* the formula for appreciate in $ is original value x appreciation rate ($225,000 x 0.02 (2%))= $4,500
what is the interest rate on a property if $12,000 is paid in annual interest on a loan balance of $455,000? a. 2.77% b. 1.89% c. 3% d. 2.64%
ANSWER: d note* the formula for finding interest rate is annual interest/ loan balance ($12,000/ $455,00)= 0.0264 (2.64%)
A home just sold for $400,000. What will the seller net after the 7% commission is deducted? a. $383,000 b. $390,000 c. $357,000 d. $372,000
ANSWER: d note* the formula for seller net earnings is sale price x (100% - % commission) $400,000 x (100% - 7%)= $372,000
What is the area of a square with a side of 14ft? a. 15sqft b. 56sqft c. 96sqft d. 196sqft
ANSWER: d note* the formula for the area of a square is (side x side) (14ft x 14ft)= 196 sqft
