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Real Estate Course > MATH REVIEW > Flashcards

MATH REVIEW Flashcards

1
Q

A property is valued at $500,000, and the loan amount is $350,000. What is the LTV ratio?

70%

85%

65%

75%

A

70%

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2
Q

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%

A

20%

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3
Q

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

A

$1,550

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4
Q

What is the prorated share for a property impacted by 10% of the total costs of $80,000?

$800

$80

$8,000

A

$8,000

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5
Q

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

A

$1,050

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6
Q

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

A

20

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7
Q

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

A

1 acre

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8
Q

Convert 0.75 to a percentage.

A

75%

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9
Q

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

A

$600

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10
Q

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%

A

5%

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11
Q

A property is listed for $300,000 and sells for $285,000. What percentage of the listing price does it sell for?

A

95%

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12
Q

What is the equity if a property’s current value is $500,000 and the current loan amount is $350,000?

A

$150,000

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13
Q

If a property’s value was $400,000 last year and it’s $450,000 this year, what is the one-year appreciation rate?

A

0.125

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14
Q

If the loan amount is $200,000, how much is 1 point in dollars?

A

$2,000

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15
Q

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

A

Buyer, Seller

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16
Q

If the gross proceeds from the sale of a property are $500,000, what is the FIRPTA withholding amount (15%)?

A

$75,000

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17
Q

Convert 3/4 to a percentage.

A

75%

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18
Q

If the listing price of a property is $300,000 and the required earnest money deposit is 4%, what is the deposit amount?

A

12,000

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19
Q

If the gross income is $4,500 and monthly debt is $2,000 for an FHA loan, what is the maximum expense allowed?

A

$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.

20
Q

A rental property generates $36,000 in annual gross rent with a GRM of 8. What is the property value?

A

$288,000

21
Q

If a 20% tip is added to a $50 meal, what’s the total bill?

A

$60

22
Q

What is the area of a rectangle with length 6 feet and width 4 feet?

A

24 sq feet

23
Q

A commercial building has an NOI of $50,000 and a capitalization rate of 10%. What is the property value?

A

$500,000

24
Q

For a property with a taxable value of $500,000 and a tax rate (mill rate) of 15 mills, what is the tax amount?

A

$75,000

25
Q

Using the 365-day method, what is the daily proration amount if the annual amount is $4,380?

A

$12

26
Q

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?

A

250,000

27
Q

If the LTV ratio of a property is 80% and the market value is $300,000, what is the loan amount?

A

$240,000

28
Q

If a home is listed for $500,000 and sells for $490,000, what percentage of the listing price does it sell for?

A

98%

29
Q

If a property was purchased for $200,000 and its current value is $250,000, what is the total appreciation?

A

$50,000

30
Q

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

A

$1,120
To calculate the PITI, multiply the gross income by the appropriate percentage range. So, $4,000 * 0.28 = $1,120.

31
Q

A real estate agent sells a property for $500,000 with a 4.5% commission rate. How much commission does the agent earn?

A

$22,500

32
Q

What is the tax rate (millage rate) if the tax requirement is $75,000 and the tax base is $2,000,000?

A

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.

33
Q

What is the cost of 2 points on a loan of $150,000?

A

$3,000

34
Q

What is the Return on Investment (ROI) if a property generates $20,000 in net operating income and its price is $200,000?

A

10%

35
Q

If a loan has a principal amount of $200,000 and an interest rate of 5%, what is the annual interest payment?

A

$10,000

36
Q

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?

A

$2,575

37
Q

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?

A

$230,000

38
Q

If the gross income is $4,500 and monthly debt is $2,000 for an FHA loan, what is the maximum expense allowed?

A

$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.

39
Q

The gross proceeds from the sale of a commercial property are $1,200,000. What is the FIRPTA withholding amount (15%)?

A

$180,000

40
Q

If the seller receives rents in advance, who is charged for the seller’s portion and credited for the buyer’s portion?

A

Buyer, Seller

41
Q

If a property’s value is $600,000 and its NOI is $48,000, what is the capitalization rate?

A

0.08

42
Q

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?

A

$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.

43
Q

If a 10% discount is applied to a $100 item, what’s the final price?

A

$90

44
Q

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?

A

$2,500

45
Q

If a property’s value is $450,000 and the current loan amount is $300,000, what is the equity?

A

$150,000

46
Q

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?

A

$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.

47
Q
A

Real Estate Course (31 decks)

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