Module 14 Quiz Flashcards

Learning Objectives: Solve basic math and percentage problems (using the T bar and Delta key on the calculator)

1
Q

A property owner sold her 3/4-acre site for $3.50 per square foot. What was the final selling price of the land?

A

$114,345

Note: 43,560 sq. ft. × 0.75 = 32,670 sq. ft. × $3.50 per sq. ft. = $114,345

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2
Q

The property taxes on a land parcel increased by $984 in the last year. If the taxes were $12,300, what is the percentage of increase?

A

8%

Note:HP 12C calculation: $12,300 [Enter] $13,284 [D%] equals 8.00%

($13,284 used above was derived by adding $12,300 and $984)

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3
Q

An existing building cost $450,000 when it was new. Over the years, the building has depreciated 15% due to wear and tear. What is the depreciated cost of the building?

A

$382,500

Note: In the above solution, think of the building as 85% depreciated or alternatively: $450,000 × 0.15 = $67,500 amount of depreciation $450,000 − $67,500 = $382,500 depreciated cost of the building

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4
Q

The Fairchilds’ property was listed for $525,000, but it was reduced in price to $493,500 due to a lack of market interest. What is the price discount expressed
as a percentage?

A

6%

Note: $525,000 − $493,500 = $31,500 / $525,000 = 0.06 or 6% discount HP 12C calculation: $525,000 \ $493,500 [D%] equals −6.00

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5
Q

A property listed on an Internet auction Web site had a minimum reserve of $160,000, which is the price not revealed to online bidders. After the bidding opened, the offers exceeded the reserve, and the property eventually sold for $174,400. What percent over their reserve price did the sellers receive?

A

9%

Note: $174,400 − $160,000 = 14,400 / $160,000 = 0.09 or 9% increase
HP 12C calculations: $160,000 \ $174,400 [D%] equals 9.00

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6
Q

BONUS:
Mosley is appraising a vacant land site that is two thirds of an acre in size and has 112.3 feet of frontage on the street. The appraiser’s market data indicates a price of $2.90 per square foot. What is the price per foot for the 112.3 feet of road frontage?

A

$749.92

Note:

1) 1 acre = 43,560 / 3 = 14,520 × 2 = 29,040 sq. ft. for the land
2) 29,040 * $2.09 = $84,216
3) $84,216/112.3 = $749.92 per front foot (or $750)

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7
Q

A property owner discounted his asking price by 12% in
order to attract market interest in the property. If the original asking price was $250,000, how much was the price reduction?

A

$30,000

Note: Multiply .12 x $250,000

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8
Q

Culver discounted his asking price by $45,000. If the original asking price was $300,000, what was the percentage price reduction?

A

15%

Note: $45,000 / $300,000

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9
Q

McDaniel lowered his asking price by 10%. If the original asking price was $450,000, what was the revised asking price of the property?

A

$405,000

Note:

1) 100 - 10% = 90% = .90
2) .90 x 450,000 = 405,000

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10
Q

A tenant gave the landlord a damage deposit that was 150% of the monthly rent. If the monthly rent is $2,100, what is the amount of the damage deposit?

A

$3,150

Note:

1) 150% = 1.5
2) 1.5 x $2,100 = $3,50

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11
Q

A seller was charged a $43,500 commission fee by her

real estate broker. If the sale price was $725,000, what was the broker’s commission percentage?

A

6%

Note: $43,500 / $725,000

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12
Q

A client included $5,000 rush service in the overall assignment fee of $25,000.
What is the percent attributable to the rush service fee?

A

20%

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13
Q

How much money does Torres need to deposit to earn $3,000 in annual interest if the annual interest rate is 5%?

A

$60,000

Note: $3,500 / .05

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14
Q

Conventional financing requires 20% as a down payment, and a pre-qualified buyer has $70,000 cash available. What is the maximum price the buyer can afford?

A

$350,000

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15
Q

Jeter paid $10,800 in debt service last year (principal
and interest) based on an original mortgage amount of
$150,000. What percent is the annual debt service to the mortgage amount?

A

7%

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16
Q

If the current sale price of a property is $241,500 and the prior sale was $210,000, how much did the property increase—expressed as a percent increase from the prior sale?

A

15%

Note: In this problem, the base price is $210,000, and we need to solve the percent increase (to $241,500). On the HP 12C, you can use the [D%] (delta percent) key to derive the percentage change.

Math check: $210,000 * 1.15 = $241,500

17
Q

The listed asking price of a property was $250,000, but the property eventually sold for $220,000. How much was the discount—expressed as a percent?

A

-12%

18
Q

The median sale price for one-unit properties in the city
of Lynwood is currently $182,000. The median price two
years earlier was $227,500. What is the change in median price from two years ago expressed as a
percent?

A

-20%

19
Q

An investor experienced a loss of 20% in her REIT mutual fund during the previous two quarters.
If the investor’s REIT portfolio was valued at $50,000 prior to the loss, how much of a percentage gain in the fund does she need to fully recover?

A

25%