RE math examples

A building is 40 feet by 25 feet with a 10 foot high ceiling. The building has a gable roof that is 8 feet high at the tallest point. How many cubic feet are in this structure, including the roof?

40'*25'*10' = 10,000 cubic feet in the building 40'*25'*8' / 2 = 4000 cubic feet in the gable roof 10000 cubic feet + 4000 cubic feet = 14000 cubic feet

How many acres are there in a parcel of land that measures 450' x 484'?

450'*484'= 217800 square feet 217800/43560 = 5 acres of land

If carpet costs $63 per square yard to install, what would it cost to carpet the room in the previous answer?

476.625 sqft / 9= 52.9583333 square yards 52.9583333 square yards * 63 per square yard = $3,336.38

What was the price per front foot for a 100' X 125' Lot that sold for $125,000? a. $1,250 b. $1,000 C. $556 d. $10

a. $1,250 $125,000 sales price / 100 front feet = 1,250

A landscaping contract for services for May 1 through October 31 totaling $2,500 has been paid in full for the current year. The house is sold and scheduled to close on July 16 and the buyers are assuming the seller's landscaping agreement. What is the amount of the proration for this expense if a banker's year is used and all prorations are made thought the day of the closing? Round your answer to the nearest tenth. a. $1,444.46 b. $1,642,42 c. $1,785.50 d. $1,790.25

a. $1,444.46 May 1 through October 31 = 6 months or 180 days 30 July (16) Closing day 14 days left in July 30 August 30 October 104 days due $2,500 landscaping expense / 180 = $13.889 per day $13.889 * 104 days due = $1,444.46

What would be an estimate of value for a building producing $11,250 annual net income and showing a rate of return of 9% a. $125,000 b. $123,626 c. $101,250 d. $122,625

a. $125,000 $11,250 annual net income / 9% rate of return = $125,000

A teacher earns a annual income of $60,000, and the teacher's spouses earns $2,400 per month. How much can the couple pay monthly for their mortgage payment if the lender uses a 28% qualifying ratio? a. $2,072 b. $1,400 c. $2,352 d. $672

a. $2,072 $60,000 annual salary / 12 months = $5,000 monthly salary $5,000 + $2,400 monthly salary = $7,400 total monthly salary $7,400*28% = 2,072 monthly payment

TWO brokers split the 6% commission on the sale of a $324,000 home. The selling broker's sales associate was paid 70% of the selling brokers share. The listing broker's sales associate was paid 30% of the listing broker's share. How much did the listing broker's sales associate receive? a. $2,916 b. $6,804 c. $19,440 d. $20,275

a. $2,916 $324,600*6% = $19,4440 full commission $19,4440/2 brokers = $9720 each broker's commission split $9720*30% = $2916 sales associate's commission

Calculate the amount of the total commission earned by a broker on a rural property selling for $61,000 if 6% is paid on the first $50,000 of the sales price and 3% is paid on the amount over $50,000. a. $3,330 b. $3,830 c. $3,600 d. $3,930

a. $3,330 $50,000*6% = $3,000 comission $61,000 sales price - $50,000 sales price at 6% = $11,000 sales price at 3% $11,000*3% = $330 commission $3,000 commission + $330 commission = $3,300

The annual tax bill on a home was $1,282 and was paid in December. The home sold the following march and will close on April 23. How much will the tax proration be, using a calendar year and prorating to the day of the closing? a. $393.34 b. $402.41 c. $396.89 D. $427.33

a. $393.34 Seller owners the buyer Jan. 1 to April 23 31 Jan. 28 Feb. 31 March 22 April 112 days due $1,282/365 = $3.512 per day $3.512*112 = $393.34

Taxes on a home for a current tac year amount to $6,468. The home was sold in July, and the sale closed on August 29. The seller has not paid any of the tax owned for the current year prior to the closing. What was the prorated tax amount using a calendar year is the proration was calculated to the day of the closing? a. $4,252.93 b. 4,607.34 c. 5,280.50 d. 6,468.00

a. $4,252.93 Seller owes buyer Jan. 1 to August 29 31 Jan 28 Feb 31 Mar 30 april 31 May 30 june 31 july 28 August =240 days due 6,468 annual tax / 35 = $17.72055 $17.72055*240 = $4,252.93 Tax proration

An income-producing property has $62,500 annual gross income and monthly expenses of $1,530. What is an estimate of the property's value using a 10% capitalization rate? a. $441,400 b. $625,000 c. $183,600 d. $609,700

a. $441,400 1,520 monthly expense * 12 months = $18360 annual expenses $62,500 annual gross income - $18,360 annual expenses = $44,140 $44,140 NOI / 10% = $441,400

How much interest will the seller owe the buyer for a closing date of august 10 if the outstanding loan balance is $43,580? The interest rate on this assumable loan is 6% , and the last payment was on august 1. Prorations are to be done through the day of the closing, using a statutory year? a. $72.63 b. $145.20 c. $290.47 d. $508.20

a. $72.63 Seller owes buyer 10 days (August 1 - August 10) $43,580*6% = $2,614.80 annual interest $2,614.80 annual interest / 360 days = $7.263 per day $7.263 per day * 10 days = $72.63

find the number of square feed in a lot with a frontage 75 feet, 6 inches, and a depth of 140 feet, 9 inches. a. 10,626.625 b. 10,652.04 c. 216.25 d. 25,510.875

a. 10,626.625 6"/12=0.5 0.5' + 75' = 75.5' 9"/12 = .75 .75' + 140' = 140.75' 140.75'*75.5' = 10,626.625

An amount of $50,000 is invested at a rate of return of 12%. What is the net operating income? a. $6,000 b. $5,600 c. $5,000 d. $4,167

a. 6,000 NOI 50,000* 12%

What is the monthly net operating income on an investment of $115,000 if the rate of return is 12.5%.? Round your answer to the nearest cent a. $1,150 b. $1,197.92 c. $7,666.67 d. $14,375.00

b. $1,197.92 NOI $115,000*12.5% = 14,375 annual NOI 14,375 annual NOI/ 12 months= $1,197.92 NOI

An office building produces $132,600 annual gross income. If the annual expenses are $30,600 and the appraiser uses an 8.5% cap rate, what is the estimated value?

$132,600 annual gross income - $30,600 annual expenses = $102,000 NOI $102,000/8.5% cap rate = $1,200,000 value

A seller listed a home for $200,000 and agreed to pay a commission of 5%. The home sold four weeks later for 90% of the list price. The listing broker agreed to give the seller broker 50% of the commission. The listing broker paid the listing sales associate 60% of this share of the commission. How much compensation did the selling sales associate receive?

$200,000*90% = $180,000 sales price $180,000*5%= $9,000 full commission $9000*50%= $4,500 listing broker's commission $4,500*60%= $2,700 Selling sales associates Commission

An investor spends $335,000 for a property that should produce a 9% rate of return. What MONTHLY NOI will the investor receive?

$335,000*9% = $30,150 $30,150 NOI / 12 months = $2,512.50 monthly NOI

A parcel of rural land sold for $335,200. The lender approved a 90% loan at 4.5% for 30 years. The Appraised value on this parcel was $335,500. How much interest is paid to the lender in the first monthly payment?

$335,200*90%= $301,680 loan amount $301,680*4.5% = $13,575.60 annual interest $13,575.60 annual interest / 12 months = $1,131.3 monthly interest

If a lender uses a loan payment factor $6.99 per $1000 of loan amount, what will be the monthly PI (principal and interest) payments

$335,200*90%= $301,680 loan amount ($301,680 loan amount / $1000)*$6.99 = $2,108.74 Monthly PI payment

After deducting $5,850 in closing costs and a 5% brokers commission, the seller received their original costs of $175,000 plus a $4,400 profit. What the sales price of the property?

$5,850 closing cost + $175000 original cost + $4,400 profit = $185,250 Sellers dollars after commission 100% Sales price - 5% commission = 95% after commission $185,250 / 95% = $195,000 $195,000 sales price is the answer

The lender will charge a 3 1/2 discount point on an $800,000 loan. What will be the total amount paid as discount points at closing?

$800,000*3.5% = $28,000 paid for points

a lease calls for a monthly minimum rent of $900 plus 3% of annual gross sales in excess of $270,000. What was the annual rent in a year when the annual gross sales were $350,600?

$900 monthly minimum rent * 12months = $10,800 annual mini rent $350,600 annual gross sales (270,000 annual gross sales not subject to the percentage) = $80,600 annual gross sales subject to the percentage $80,600*3%= 2,418 percentage rent $10,800 annual minimum rent + 2,418 percentage rent = $13,218 total annual rent is the answer.

How many acres are in a three-sided tract of land that is 300' on the base and 400" high?

(300'*400') / 2 = 60,000 square feet 60,000/43560 = 1.377 acres

How many square feet are contained in a triangular parcel of land that is 400 feet on the bas and 200 feet high?

(400'*200')/2 40,000 square feet

Marco Invested in a mountain cabin a few years ago and made no improvements to the property. He just sold the cabin for $80,640, losing %16 of his investment. What did the cabin cost to Marco?

100% seller's cost - 16% loss = 84% today's value $80,640/84% = $96,000 sellers cost

A home listed for $285,000 and sold for $275,000, which gave the seller a 10% profit over the seller's cost. What was the seller's cost?

100% sellers cost + 10% profit = 110% sales price $275,000/110% = $250,000 Sellers cost

A parcel of land that fonts on Interstate 45 in Houston Texas, is for sale at $5000 per front foot. What will it cost to purchase this parcel of land if the dimensions are 150 feet by 100 feet.

150 is the frontage because it is the first dimension given. 150 front feet * $5000 = $750,000

An a-frame cabin in the mountains is 50 feet long and 30 feet wide. The cabin is 25 feet high from the base to the highest point. How many cubic feet of space does this A-frame cabin contain?

50' * 30' * 25' / 2 = 18750 cubic feet

A building is 500 feet long, 400 feet wide, and 25 feet high. How many cubic feet of space are in this building?

500' * 400' * 25' = 5,000,000 cubic feet

How many cubic yards of concrete would it take to build a side-walk measuring 120 feet long; 2 feet, 6 inches wide, and 3 inches thick?

6"/12"= 0.5" + 2' = 2.5' wide 3"/12"= .25' Thick 120' * 2.5' * .25' = 75 cubic feet 75/27= 2.778 cubic yards

How many square feet are in a room 15'6" x 30'9"? remember we must use like dimensions, so the inches must be converted to feet/

6"/12=.5"+15'=15.5' 9"/12=.75"+30=30.75' 15.5*30.75= 476.625 square feet

The Market Value of a condominium is $155,000. For Tax purposes, the property is assessed at 90% of the market value. The annual tax rate is $2.50 per $100 os assessed value. If the closing is on March 13, what is the prorates amount for the current tax year? Prorations are calculates through the day of closing and using a statutory year.

Banker's Year/ Statutory Year Step 1: Find the exact number of days accrued taxes from the beginning of the tax period (January 1) up to and including the closing (March 13) 2 Months (January and February)* 30 days per month = 60 60+13 days in march = 73 days Note: It would be 72 days (73 minus 1 day) if the problem had said to prorate to the day of the closing Step 2: Calculate the annual taxes. Market Value*Assessment Ratio = assessed value (assessed / $100)* tax rate per hundred = annual tax $115,000*90%=103,500 ($103,500/$100)*2.5 = $2,587.50 annual tax Step 3: Find the Tac amount per day. Annual Tax / 360 days per year = daily tax $2,587.50/360 days= $7.188 daily tax Step 4: Compute the prorated tax amount Daily tax * days owed = tax proration $7.188 daily tax *73 days = $524.72 debt sellers, credit buyers Calendar Year (if the problem has said to use a calendar year) Step 1: Find the exact number of days accrued tax from the beginning of the tax period (January 1) up to and including the day of closing (March 13) 31 days in Jan + 28 days in Feb+ 13 days in March = 72 days Note: It would be 71 days (72 minus 1 day) if the problem had said to prorate to the day of the closing Step 2: Calculate the annual tax. Market Value * Assessment ratio = assessed value (assessed Value/$100)* Tax rate per hundred = annual tax $155,000*90% = $103,500 ($103,500/$100)*2.5 = $2.587.50 annual tax Step 3: find the Tax amount per day. Annual tax / 365 days per year = daily tax $2.587.50 annual tax /365 days per year= $7.089 Step 4: Compute the prorate tax amount Daily tax * days owed = Tax proration $7.089 per day * 72 days = $510.408 $510.408 debit seller, credit buyer

a home was purchased on April 4 for $110,000, and the closing was set for the following May 8. The buyer assumed the seller's $93,600 loan balance on an original loan amount of $96,000 with 6.5% interest and monthly payments of $612.62 due on the first day of each month. How much will the interest proration be, using a banker's year and prorating through the day of the closing? Who will be debited and who will be credited.

Banker's year/Statutory Year Step 1: Find the exact number of days of earned or accrued interest Sellers owes 8 days (May 1 through May 8) Note it woud be 7 days (8 days minus 1 day) is the problem has said prorate to the day of the closing Step 2: Find the daily interest Charge. Outstanding loan balance * annual interest rate = annual interest annual interest / 360 days per year = daily interest $93,600*6.5% = 6,084 annual interest $6,084/360 days = $16.90 daily interest Step 3: Compute the total amount of accrued interest. Daily interest*days owed = interest proration $16.90 daily interest * 8 days = $135.20 $135.20 debit seller, credit buyer Calendar Year (if the problem had said to use a calendar year) Step 1: Find the exact number of days earned or accrued interest. Sellers owes 8 days (May 1 through May 8) Note it would be 7 days (8 days minus 1 day) if the problem has said to prorate to the day of closing Step 2: Find the daily interest charge. Outstanding loan balance*annual interest rate = annual interest annual interest / 365 days per year = daily interest $93,600*6.5% = 6,084 annual interest $6,084 / 365 days = $16.668 daily interest Step 3: Compute total amount of accrued interest. Daily interest*days owed = interest proration $16.668 daily interest *8days = 133.344 $133,34 debt seller, credit buyer

A buyer is purchasing an apartment complex that contains 15 units that rent $450 per month each. A $450 security deposit is being held on each unit. The sale is to close on March 14, and the March Rent has been received for all 15 units. Compute the rent proration by prorating through the day of the closing.

Calendar Days (remember to use actual days in the month unless specified differently Step 1: Compute the unearned days of rent for the month of closing. 31 days in March (14 days of closing) = 17 days of unearned rent Note: it would be 18 days (17 days plus 1 day) if the problem has said prorate to the day of closing. Step 2: Compute the daily rent. [(Monthly rent*Number of unites paid = total rent collected)/number of actual days in the month of closing]= daily rent $450*15 units = $6,750 monthly rent collected $6,750/31days in March = 217.742 daily rent Step 3: Compute the prorate rent amount. Daily rent*days of unearned rent 217.742*17days = $3,701.614 Step 4: Compute the security deposit. $450 per unit * 15 unit = $6,750 $3,701.62 Rent proration, $6,750 security deposit Debit to Seller, Credit to Buyer

A credit

Gives money to a person

Monthly interest on a loan with a 9.25% annual interest rate is $65.53. what is the loan amount rounded to the nearest hundred dollars? a. $1,400 b. $2,800 c. $6,300 d. $8,500

d. $8,500 $65.53 monthly interest * 12 months = $786.36 $786.36 /9.25% = $8,501.19

A lease calls for rent of $1000 per month plus 2% annual sales in excess of $100,000 what is the annual rent is the annual sales are $150,000? a. $12,000 b. $13,000 c. $14,000 d. $15,000

b. $13,000 $1000 monthly minimum rent * 12 = 12,000 annual minimum rent $150,000 annual sales - $100,000 = $50,000 annual sales sub to 2% $50,000*2% = $1000 $12,000+$1,000 = $13,000

The sale of a home is to close on September 28. Included in the sale is a garage apartment that is rented for $350 a month. The tenant has paid the September rent. What is the rent proration, using actual days and prorating through the day of closing? Round your answer to the nearest cent. a. $325.67 b. $23.33 c. $350.00 d. $175.00

b. $23.33 30 days in September - 28 days of closing = 2 days due $350 monthly rent / 30 days = 11.666667 per day * 2 days = $23.33 rent proration

A property sells for $295,200. If it has appreciated for a total of 20% over the past five years, what did the owners pay for the property 5 years ago? a. $175,000 b. $246,000 c. $286000 d. $320,000

b. $246,000 100% cost + 20% appreciation = 120% appreciated property value 295,200/120%= $246,000

What did the seller pay for their home if sold it for $298,672, which have gave them 12% profit over their original cost? Round your answer to the nearest cent? a. $243,671.43 b. $266,671.43 c. $312,512.64 d. $334,512.64

b. $266,671.43 100% original cost + 12% profit = 112% sales price $298,672/112% = $266,671.43

A sales associate sells a property for $258,300. The Sales associate's employment agreement provides for a 60% share of the employing broker's commission. The commission due the selling broker 2.5%. What is the selling Sale associate's share of the commission? a. $2,106.00 b. $3,877.50 c. $6,462.50 d. $10,340.00

b. $3,877.50 $258,300*2.5%= 6,462.50 brokers commission 6,462.50 brokers commission *60%= $3,877.50

Calculate eight months' interest on a $5,000 interest-only loan at 9.5%. a. $475.00 b. $316.66 c. $237.50 d. $39.58

b. $316.66 5,000 loan*9.5% = $475 annual interest $475/12 months = 39.58 monthly interest 39.58 monthly interest * 8 months = $316.66 interest

Find the cost of building a house 29'X34'X17' with a gable roof 8' high at the highest point. The cost of construction $2.25 per cubic foot. a. $55,456.50 b. $46,588.50 c. $37,714.50 d. $27,731.25

b. $46,588.50 29'*34'*17' = 16762 cubic feet in house 29'*34'*8' = 3,944 cubic feet in attic 16,762 cubic feet + 3,944 cubic feet in attic = 20706 cubic feet total 20706 cubic feet total * 2.25 per cubic foot = $46,588.5 construction cost

An office building produces $68,580 annual net operating income. What price would an investor pay for this property to show a minimum return of 12% on the investment a. $489,857 b. $571,500 c. $685,800 d. $768,096

b. $571,500 $68,580/12%= $571,500

a new house and lot cost the buyer $565,000 of this total price, the lot was estimated to be worth $130,000. The buyer held the property for 8 years. If the average market prices of comparable properties in the are increased by 32% over that period, what would be the total value of the property at the end of 8 years? a. $695,300 b. $745,800 c. $810,900 d. $925,800

b. $745,800 100% cost + 32% appreciation = 132% appreciated property value $565,000 cost * 132% = $745,800

if a 6.5% full brokerage commission was $5,200 what was the sale price of the house? a. $80,400 b. $80,000 c. $77,200 d. $86,600

b. $80,000 $5,200/6.5%

A lot has a frontage of 100 feet and a depth of 150 feet. If the building line regulations call for a setback of 25 feet at the front, 10 feet at the back, and 6 feed on each side, how many square feet of useable space are left for the building? a. 9,350 b. 10,120 c. 11,750 d. 15,000

b. 10,120 Front and back set backs are 25' + 10" = 35" 150' depth - 35' setback = 115' Side setback are 6' + 6" = 12" 100" frontage - 12" = 88' left 115'*88'= 10,120

If a buyer borrows $4,400, agreeing to pay back principal and interest in 18 months, what annual interest rate is the buyer paying if the total payback is $5,588? a. 15% b. 18% c. 21.3% d. 27%

b. 18% $5,588 payback (Principal + Interest) - $4,400 loan (principal) = $1,188 interest for $18 months $1,188/ 18 monthly = $66 monthly interest $66 * 12 months = $792 annual interest $792/4,400 = 0.18

A buyer pays $9,500 each for four parcels of land. He subdivides them into six parcels and sells each of the six parcels for $7,500. What is the buyer's percentage of profit? Round your answer to the nearest percent? a. 16% b. 18% c. 22% d. 38%

b. 18% $9,500 cost * 4 parcels = $38,000 total costs $7,500 sales price * 6 parcels = $45,000 sales price $45,000 sales price - $38,000 total costs = $7,000 profit $7,000 profit /$38,000 total costs = 18%

A tenant's monthly rent is $825. What is the rent as a percentage of annual income of $41,000? round your answer to the nearest percent. a. 18% b. 24% c. 33% d. 40%

b. 24% $825 monthly rent * 12 months = $9,990 annual rents $9,900 / $41,000 = 0.24.1 or 24%

What is the interest rate on a $10,000 loan that requires a semiannual interest payment of $450? a. 7% b. 9% c. 11% d. 13.5%

b. 9% $450 semiannual interest * 2 = $900 annual interest rate $900 annual interest rate / $10,000 loan = 9%

What is the total cost of paving a driveway 15' wide, 40' long, and 4" think if the concrete to be used costs $60.00 per cubic yard and labor cost $1.25 per square foot? a. $527.25 b. $693.75 c. $1,194.00 D. $1,581,75

c. $1,194.00 Concrete: 40'*15'*(4/12)' = 199.8 cubic feet 199.8/27 = 7.4 cubic yards 7.4* $60 per cubic yard = $444 Labor: 40' *15' = 600 square feet 600*1.25 per square food = $750 $444+$750= 1194.00

A gift shop pays rent of $600 per month plus 2.5% of gross annual sales in excess of $50,000. What was the average monthly rent last year if gross annual sales were $75,000? round your answer to the nearest cent. a. $1,225.00 b. $756.25 c. $600,00 d. $652.08

d. $652.08 $75,000 gross annual sales ($50,000) =$25,000*0.025 = $625 annual percentage rent $625 annual percentage rent / 12 months = $52.08 monthly % rent $600 monthly minimum rent + $52.08 monthly percent rent = $652.08

a 28-unit apartment house is being valued using the income approach. Each unit rent for $775 a month, an amount that is consistent with like rental units in the vicinity. for the past five years, the annual expenses of operations for the property have averaged $82,460 and the building has maintained a consistent vacancy rate of 5%. a potential investor is only interest if the cap rate is at least 9.5%. what is property's likely value using these variables? a. $2,741,100 b. $868,000 c. $1,736,000 d. $1,873,100

c. $1,736,000 $775 monthly rent * 28 units * 12 months = $260,400 annual scheduled gross income $260,400 - 5% vacancy rate = $247,380 annual effective gross income $247,380 - $82460 annual expenses = $164,920 annual net operating income $164,920/9.5% = $1,736,000 property value

The Buyer is purchasing a four plex and closing on November 4. Each apartment rents for $875 per month. As over 1, one apartment is vacant and other tenants have paid their November rent. Compute the rent proration through the day of the closing. a. $345.00 b. $1,993.33 c. $2,275.00 d. $4,935.72

c. $2,275.00 30 November (4) day of closing = 26 days due $875 monthly rent * 3 units = $2,625 monthly rent $2,625 / 30 days = $87.50 $87.50 * 26 days = 2,275 rent prorations

A buyer is granted a 90% loan for $340,500. How much will the monthly principal interest payment be, using a loan payment factor of $7.16 per $1,000 of loan? a. $2,194.18 b. $4,755.59 c. $2,437.98 d. $3,064.50

c. $2,437.98 $340,550/ $1000 = 340.5 340.5 *7.16 = 2,437.98

A tract of land measures 1.25 acres. The lot is 150 feet deep. how much will the lot sell for at $65 per front foot? a. $9,750 b. $8,125 c. $23,595 d. $25,420

c. $23,595 1.25 acres * 43560 = 54,450 square feet 54,450/150' = 363' frontage 363' frontage*$65 per front foot = $23,595

If the bank makes a 90% loan on a house valued at $88,500, how much additional cash is required for a down payment if the buyer has already paid $4,500 in earnest money? a. $3,500 b. $4,000 c. $4,350 d. $8,850

c. $4,350 100% - 90% LTV = 10% down payment $88,500*10%= 8,850 8850 down payment - 4500 earnest money = $4,350

The buyer has agreed to a $175,000 sales price, 2.5 loan discount points, and a 1% loan origination fee. if the buyer receives a 90% loan to value, how much will the buyer owe at the closing for points and the ordination fee? a. $1,575.00 b. $3,937.50 c. $5,512.50 d. $6,125.00

c. $5,512.50 2.5 loan discount points + 1 point origination fee= 3.5 points $175,000*90% = $157,500 loan $157,500*3.5%= 5,512.50

If you purchase a lot that is 125'x150' for $6,468.75, what price did you pay per front foot? a. $23.52 b. $43.13 c. $51.75 d. $64.69

c. $51.75 $6,468.75 price / 125 front feet = $51.75

A buyer is assuming the balance of a seller's second mortgage loan. The interest rate is 8%, and the last monthly payment of $578.16 was paid on April 1, leaving an outstanding balance of $18,450. Using a banker's year, compute the interest to be paid by the seller if the sale is to close on April 19. Prorate through the day of closing? a. $110.83 b. $82.00 c. $77.90 d. $123.00

c. $77.90 Seller owes buyer 19 days (April 1 to April 19) $18,450*8% = $1,476 $1,476 annual interest / 360 days = $4.10 per day $4.10 per day * 19 days = $77.90

A developer buys 348,480 square feet of land at $0.75 per square foot and divides the land into half-acre lots. if the developer keeps three lot and sellers the other for $24,125 each, what percentage of profit does the developer realize? a. 47.4% b. 32.2% c. 20% d. 16.7%

c. 20% 348,480square feet * $0.75 per square foot = $261,360 cost 348,480square feet / 43,560 sqft/acre = 8 acres 8 acres* 2 lots = 16 lots 16 lots - 3 lots = 13 lots sold 13 lots * $24,125 each = $313,625 total sales price $313,625 total sales price - $261,360 cost = 52,265 profit 52,265 profit/ $261,360 cos = 20% profit

What percentage of profit would Arun make if he paid $20,500 for a lot, built a home on the lot that costs $133,000, and then sold the lot and house together for $194,550? round your answer to the nearest percent. a. 13% b. 23% c. 27% d. 45%

c. 27% $20,500 cost of lot + $133,000 Cost of hoe = $153,500 total cost $194,550 sales price - $153,500 total cost = $41,050 $41,050 / $153,500 total cost = .0267

a fence is being built to enclose a lot 125 feet by 350 feet. If there will be one 10-foot gate, how any running feet of fence will be needed? a. 465 b. 600 c. 940 d. 960

c. 940 125' + 350' +125' + 350' - 10 gate = 940

a buyer earns $60,000 per year and can qualify for a monthly PITI payment equal to 25% of monthly salary. If the annual tax and insurance on prospective buyer is $678.24, what loan amount will the buyer qualify for if the monthly PI payment factor is $10.29 per $1,000 of loan amount a. $99,987 b. $108,965 c. $112,784 d. $115,980

d. $115,980 $60,000 annual salary / 12 months = $5000 monthly salary $5000*25% = $1,250 monthly PITI $678.24 annual taxes and insurance / 12 months = $56.52 monthly TI $1,250 monthly PITI - $56.52 monthly TI = $1,193..48 Monthly PI $1,193..48 Monthly PI / $10.29 = 115.9845 115.940 * 1000 = $115,980

The vale of property is $91,000 today. what was the original cost is the property has lost 35% of its value over the past seven years? a. $67407.41 b. $95,789.47 c. $122,859.00 d. $140,000.00

d. $140,000.00 100% of original cost - 35% total depreciation = 65% today's value $91,000/65% = $140,000

a lot purchased 5 years ago or $15,000 has appreciated a total of 17.5% since its purchase. What is it worth today a. $12,375 b. $15,525 c. $17,250 d. $17,625

d. $17,625 100% cost + 17.5% total appreciation = 117.5% todays value $15,000*117.5% = $17,625

The seller received a $121,600 check at closing after paying a 7% broker commission, $31,000 in other closing costs, and a $135,700 loan payoff. What was the total sales price? a. $288,300 B. $306,300 c. $308,500 d. $310,000

d. $310,000 $121,600 seller's net $31,000 closing cost $135,700 loan payoff = $288,300 seller's dollar after commission 100% sales prince = 7% commission = 93% sellers dollar after Com. $288,300/93%= $310,000

an owners agrees to list his property on the conditions that he will receive at least $47,300 after paying a 5% broker's commission and paying $1,150 in closing costs. at what prince must it sell? a. $48,450 b. $50,815 c. $50,875 d. $51,000

d. $51,000 $47,300 net to seller + $1,150 closing cost = $48,450 sellers dollars after commission 100%- 5% commission = 95% sellers percentage after commission $48,450/95%=$51,000

A warehouse is 80 feet wide and 120 feet long with ceiling 14 feet high. If 1,200 square feet of a has been partitioned off, floor to ceiling, for an office, how many cubic feet of space will be left in the warehouse? a. 151,200 b. 134,400 c. 133,200 d. 117,600

d. 117,600 120' * 80' = 9,600 square feet in building 9,600 - 1,200squarefeet for office=8,400squarefeet left in warehouse 8,400* 14' ceiling = 117,600

A 100-acre farm is subdivided into lots for home. The streets require one-eighth of the entire property, and the remaining acreage is divided into 140 lots of approximately the same size. About how many square feet are in each lot? a. 43,560 b. 35,004 c. 31,114 d. 27,225

d. 27,225 square feet per lot 1/8= 0.125 for streets 100 acres * 0.125 = 12.5 acres for streets 100 acres - 12.5 acres for streets = 87.5 acres for lots 87.5* 43,560 square feet per acre = 3,811,500 square feet buildable land 3,811,500 / 140 lots= 27,225 square feet per lot

A 50' X 100' lot has a 2,400 square foot house on it that contains four bedrooms and three bathrooms. What percentage of the lot is not taken up by the house? a. 21% b. 48% c. 50% d. 52%

d. 52% 50'*100' = 5000 square feet of lot - 2,400 square feet of house = 2,600 square feet not taken up by house 2,600/5,000 = .52

A Debt

takes money from a person