Course Math Review

Question 1

What is the yearly debt service on a mortgage of $100,000, paid monthly for 25 years at 9.5%interest?

Answer 1

$10,484.36

25 g n –> 9.5 g i –> 100,000 CHS PV –> PMT –> 873.70
–> 12 x –>10,484.36

Question 2

How much must be deposited each year in a bank account that pays 4.5% interest annually, to accumulate to $100,000 in 10 years?

Answer 2

$8,137

10 n –> 4.5 i –> PV – > 100,000 CHS FV –> PMT –> 8,137.88

Question 3

What would an investor pay for the right to receive an income stream of $75,000 per year for 15years at a 12% interest rate?

Answer 3

$510,814.84

15 n –> 12 i –> 75,000 CHS PMT –> FV –> PV –> 510,814.84

Question 4

What is the monthly payment for a $135,500 mortgage, at 6.5% for 25 years paid monthly?

Answer 4

$914.91

25 g n –> 6.5 g i –> 135,500 CHS PV –> FV –> PMT –> 914.91

Question 5

How much actual useable space is there in a warehouse with exterior dimensions of 125 by 300feet, if the walls are two feet thick, and there are ten 4’ x 4’ interior columns?

Answer 5

$35,656

125 – 4 = 121
300 – 4 = 296
121 x 296 = 35,816
Less 4 x 4 x 10 = 160
35,816 – 160 = 35,656

Question 6

An office building is located in a city that assessed at 50% of market value. The mill rate is 35 for schools and 15 for the county. If the office building has a market value of $3,000,000, what is the effective tax rate?

Answer 6

.025

$3,000,000 x .50 = $1,500,000
$1,500,000 / 1,000 = 1,500
1,500 x 50 = $75,000
$75,000 / $3,000,000 = .025

Question 7

A house has a market value of $100,000. If the municipality assesses at 35% of value, and thetotal tax rate is $121.09 per $1,000 of assessment, how much are the taxes?

Answer 7

$4,238.15

$100,000 x .35 = $35,000
$35,000 / 1,000 = 35
35 x $121.09 = $4,238.15

Question 8

I just sold my warehouse for $2,000,000. This was 10% more than I paid for it. How much did I pay for it?

Answer 8

$1,818,181

$2,000,000 / 1.10 = $1,818,181

Question 9

I listed my warehouse for $200,000, but it sold for $185,000. What is the percent of price reduction?

Answer 9

.075

$200,000 – 185,000 = $15,000
$15,000 / 200,000 = 0.075

Question 10

If the lender requires the buyer to put 30% down, and the buyer has $25,000 cash, what is the maximum price the buyer could pay?

Answer 10

$83,333

$25,000 / .30 = $83,333

Question 11

I own a tract that measures 1,320 x 660 feet. How many acres do I own?

Answer 11

20 acres

1,320 x 660 = 871,200
871,200 / 43,560 = 20.0 Acres

Question 12

I own a tract that measures 660 x 660 feet. The market indicates that it is worth $15,000 per acre. What is the market value of my property?

Answer 12

$150,000

660 x 660 = 435,600
435,600 / 43,560 = 10.0
10.0 x $15,000 = $150,000