MATH REVIEW Flashcards
A property is valued at $500,000, and the loan amount is $350,000. What is the LTV ratio?
70%
85%
65%
75%
70%
A property has a cash flow of $25,000 and equity of $150,000. What is the Return on Equity (ROE)?
5%
10%
15%
20%
20%
If monthly gross income is $5,000 for an FHA loan, what is the maximum PITI allowed?
$1,400
$1,500
$1,550
$1,550
$1,550
What is the prorated share for a property impacted by 10% of the total costs of $80,000?
$800
$80
$8,000
$8,000
If the current rent for an apartment is $1,000 per month and there’s a 5% annual escalation, what is the new monthly rent after one year?
$1,050
$950
$1,100
$1,500
$1,050
If the tax requirement is $100,000 and the tax base is $500,000, what is the tax rate (millage rate)?
10
20
25
30
20
If a square piece of land measures 150 feet on each side, what is its area in acres?
0.25 acres
0.5 acres
1 acre
2 acre
1 acre
Convert 0.75 to a percentage.
75%
An interest-only loan with a principal of $150,000 and an interest rate of 6% has what monthly interest payment?
Answer
$750
$600
$1,500
$900
$600
If a property sells for $300,000 and the real estate agent earns $15,000 in commission, what is the commission rate?
Answer
2%
3%
4%
5%
5%
A property is listed for $300,000 and sells for $285,000. What percentage of the listing price does it sell for?
95%
What is the equity if a property’s current value is $500,000 and the current loan amount is $350,000?
$150,000
If a property’s value was $400,000 last year and it’s $450,000 this year, what is the one-year appreciation rate?
0.125
If the loan amount is $200,000, how much is 1 point in dollars?
$2,000
If the seller receives rents in advance, who is charged for the seller’s portion and credited for the buyer’s portion?
Seller, Buyer
Buyer, Seller
Seller, Seller
Buyer, Buyer
Buyer, Seller
If the gross proceeds from the sale of a property are $500,000, what is the FIRPTA withholding amount (15%)?
$75,000
Convert 3/4 to a percentage.
75%
If the listing price of a property is $300,000 and the required earnest money deposit is 4%, what is the deposit amount?
12,000
If the gross income is $4,500 and monthly debt is $2,000 for an FHA loan, what is the maximum expense allowed?
$1,400
To calculate the allowed expense, multiply the gross income by the appropriate percentage and subtract the monthly debt. So, ($4,500 * 0.43) - $2,000 = $1,400.
A rental property generates $36,000 in annual gross rent with a GRM of 8. What is the property value?
$288,000
If a 20% tip is added to a $50 meal, what’s the total bill?
$60
What is the area of a rectangle with length 6 feet and width 4 feet?
24 sq feet
A commercial building has an NOI of $50,000 and a capitalization rate of 10%. What is the property value?
$500,000
For a property with a taxable value of $500,000 and a tax rate (mill rate) of 15 mills, what is the tax amount?
$75,000
Using the 365-day method, what is the daily proration amount if the annual amount is $4,380?
$12
A comparable property sold for $300,000, but it’s smaller than the subject property. If the adjustment is $50,000 for size difference, what is the adjusted value?
250,000
If the LTV ratio of a property is 80% and the market value is $300,000, what is the loan amount?
$240,000
If a home is listed for $500,000 and sells for $490,000, what percentage of the listing price does it sell for?
98%
If a property was purchased for $200,000 and its current value is $250,000, what is the total appreciation?
$50,000
For a conventional loan, if monthly gross income is $4,000, what is the PITI within the recommended range?
$1,200
$1,120
$1,000
$1,280
$1,120
To calculate the PITI, multiply the gross income by the appropriate percentage range. So, $4,000 * 0.28 = $1,120.
A real estate agent sells a property for $500,000 with a 4.5% commission rate. How much commission does the agent earn?
$22,500
What is the tax rate (millage rate) if the tax requirement is $75,000 and the tax base is $2,000,000?
7.5
To calculate the tax rate, divide the tax requirement by the tax base. So, $75,000 / $2,000,000 = 0.0375, or 7.5 mills.
What is the cost of 2 points on a loan of $150,000?
$3,000
What is the Return on Investment (ROI) if a property generates $20,000 in net operating income and its price is $200,000?
10%
If a loan has a principal amount of $200,000 and an interest rate of 5%, what is the annual interest payment?
$10,000
An office space currently rents for $2,500 per month. If the annual escalation is 3%, what will be the new monthly rent after one year?
$2,575
If a comparable property sold for $250,000 and it’s similar to the subject property but requires $20,000 in repairs, what is the adjusted value?
$230,000
If the gross income is $4,500 and monthly debt is $2,000 for an FHA loan, what is the maximum expense allowed?
$1,400
To calculate the allowed expense, multiply the gross income by the appropriate percentage and subtract the monthly debt. So, ($4,500 * 0.43) - $2,000 = $1,400.
The gross proceeds from the sale of a commercial property are $1,200,000. What is the FIRPTA withholding amount (15%)?
$180,000
If the seller receives rents in advance, who is charged for the seller’s portion and credited for the buyer’s portion?
Buyer, Seller
If a property’s value is $600,000 and its NOI is $48,000, what is the capitalization rate?
0.08
If the monthly proration amount is $120 and the seller’s days are 25 using the 360-day method, what is the seller’s share?
$2,500
To calculate the seller’s share using the 360-day method, multiply the daily amount by the number of seller’s days. So, $120 * 25 = $3,000.
If a 10% discount is applied to a $100 item, what’s the final price?
$90
If the total costs to be assessed for a property are $50,000 and it is impacted by 5%, what is the prorated share for the property?
$2,500
If a property’s value is $450,000 and the current loan amount is $300,000, what is the equity?
$150,000
If the taxable value of a property is $300,000 and the tax rate (mill rate) for the taxing authority is 10 mills, what is the tax amount?
$3,000
To calculate the tax amount, multiply the taxable value of the property by the tax rate. So, $300,000 * 0.01 = $3,000.
