Math

Question 1

What did the owners originally pay for their home if they sold it for $98,672, which gave them 12% profit over their original cost?

A. $86,830
B. $88,100
C. $89,700
D. $110,510

Answer 1

B

Question 2

What would you pay for a building producing $11,250 annual net income and showing a minimum rate of return of 9%?

A. $125,000
B. $123,626
C. $101,250
D. $122,625

Answer 2

A

Question 3

And owner agrees to list his property on the condition that he will receive at least $47,300 after paying 5% broker’s commission and paying $1150 in closing costs. At what price must it sell?

A. $48,450
B. $50,815
C. $50,875
D. $51,000

Answer 3

D

Question 4

A gift shop pays rent of $600 per month +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?

A. $1,125.00
B. $756.25
C. $600.00
D. $652.08

Answer 4

D

Question 5

If your monthly rent is $1050, what percent would this be of an annual income of $42,000?

A. 25%
B. 30%
C. 33%
D. 40%

Answer 5

B

Question 6

Two managing broker split the 6% commission on the $73,000 home. The selling licensee was paid 70% of his broker share. The listing licensee was paid 30% of her broker share. How much did the listing licensee receive?

A. $657
B. $4,380
C. $1,533
D. $1,314

Answer 6

A

Question 7

The buyer has agreed to pay $175,000 in sales price, 2.5 loan discount points, and a 1% origination fee. If the buyer receives a 90% loan to value ratio, how much will the buyer owe at closing for points and the origination fee?

A. $1,575.00
B. $3,937.50
C. $5,512.50
D. $6,125.00

Answer 7

C

Question 8

Calculate eight months interest on a $5000 interest only loan at 9.5%

A. $475
B. $316.67
C. $237.50
D. $39.58

Answer 8

B

Question 9

A 100 acre farm is divided into lots for homes. The streets require one eighth of the whole farm, and there are 140 lots. How many square feet are in each lot?

A. 43,560
B. 35,004
C. 31,114
D. 27,225

Answer 9

D

Question 10

What is the monthly net income on an investment of $115,000 if the rate of return is 12.5%?

A. $1,150
B. $1,197.92
C. $7,666.67
D. $14,375.00

Answer 10

B

Question 11

A licensee sell the property for $58,500. The contract he has with his managing broker is 40% of the full commission earned. The commission due to the managing broker is 6%. What is the licensee share of the commission?

A. $2,106
B. $1,404
C. $3,510
D. $2,340

Answer 11

B

Question 12

What is the interest rate on a $10,000 loan with a semi annual interest of $450?

A. 7%
B. 9%
C. 11%
D. 13.5%

Answer 12

B

Question 13

A warehouse is 80 feet wide and 120 feet long with ceilings 14 feet high. It’s 1200 ft.² of floor surface has been partitioned off from 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

Answer 13

D

Question 14

The lot you purchased five years ago for $30,000 has appreciated 3.5% per year. What is it worth today?

A. $30,375
B. $33,525
C. $34,500
D. $35,250

Answer 14

D

Question 15

A lease calls for $1000 per month minimum +2% of annual sales in excess of $100,000. What is the annual rent if the annual sales were $150,000?

A. $12,000
B. $13,000
C. $14,000
D. $15,000

Answer 15

B

Question 16

There is a tract of land that is 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. $8,725

Answer 16

C

Question 17

A woman earns $20,000 per year and can qualify for a monthly PI TI payment equal to 25% of her monthly salary. If the annual tax and insurance is $678.24, what is the loan amount she will qualify for if the monthly PI payment factor is $10.29 per $1000 of the loan amount?

A. $66,000
B. $43,000
C. $40,500
D. $35,000

Answer 17

D

Question 18

You pay $65.53 monthly interest on a loan very 9.25% annual interest. What is the loan amount rounded to the nearest hundred dollars?

A. $1,400
B. $2,800
C. $6,300
D. $8,500

Answer 18

D

Question 19

What percentage of profit would you make if you pay $10,500 for a lot, build a home on the lot that cost $93,000, and then sold the lot and house together for $134,550?

A. 13%
B. 23%
C. 30%
D. 45%

Answer 19

C

Question 20

An income producing property has $62,500 annual gross income and monthly expenses of $1530. What is the appraised value of the appraiser uses a 10% capitalization rate?

A. $441,400
B. $625,000
C. $183,600
D. $609,799

Answer 20

A

Question 21

A man pays $2500 each for four parcels of land. He subdivides them into six parcels and sells each of the six parcels for $1950. What was his percentage of profit?

A. 14.5%
B. 17%
C. 52%
D. 78%

Answer 21

B

Question 22

A property sells for $96,000. If it appreciated 4% per year straight line for the past five years, what did the owner pay for the property five years ago?

A. $76,800
B. $80,000
C. $92,300
D. $115,200

Answer 22

B

Question 23

If you purchase the lot that is 125’ x 150’ for $6468.75, what price did you pay per front foot?

A. $23.52
B. $44.13
C. $51.75
D. $64.69

Answer 23

C

Question 24

Calculate the amount of commission earned by a broker on a property selling for $61,000 it’s 6% is paid on the first $50,000 and 3% is paid on the remaining balance.

A. $3,330
B. $3,830
C. $3,600
D. $3,930

Answer 24

A

Question 25

The value of your house, not including the lot, is $91,000 today. What was the original cost if it has depreciated 5% per year for the past seven years?

A. $67,407.41
B. $95,789.47
C. $122,850.00
D. $140,000.00

Answer 25

D