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Problem Solving Flashcards

1
Q

Samuel purchased a brand new equipment on February 1, 2012 at a cost of Php1,500,000. The equipment has an estimated useful life of 7 years and an estimated salvage value of Php200,000. Compute the depreciation using the straight-line method

A. Php162,500
B. Php275,000
C. Php250,000
D. Php187,000

A

D. Php187,000

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2
Q

Anna hired a licensed real estate appraiser to value a parcel of land she wants to dispose. Upon investigation, the appraiser found out that a parcel of land nearby was sold recently for Php12,000 per square meter. The appraiser also gathered that the property of Anna has the following attributes when compare to the lot sold: corner influence +8, topography -3, shape +12. Compute the per square meter value adjustment on the property of Anna.

A. Php2,040
B. Php2,760
C. Php2,670
D. Php2,400

A

A. Php2,040

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3
Q

A commercial rectangular lot with a measurement of 25 meters by 30 meters and has a unit value of Php15,000 per square meter based on the schedule of market value of the assessor. Compute the total real property tax (Basic and SEF) to be paid using the maximum assessment level for a commercial land and maximum basic and SEF tax rate of a city

A. Php140,625
B. Php168,750
C. Php45,000
D. Php112,500

A

B. Php168,750

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4
Q

An apartment complex has a 400 units, 50 of which are available for lease. How many units should be rented out in order that the vacancy rate be reduced to 5%?

A. 360
B. 380
C. 370
D. 350

A

B. 380

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5
Q

In a 216-apartment complex, the ratio of the one-bedroom and two-bedroom is 4:5. Compute the monthly income of the apartment complex with an average vacancy rate of 8%, if the rate of the one-bedroom and two-bedroom units are Php5,000 and Php8,000 respectively.

A. Php1,324,800
B. Php1,368,000
C. Php1,258,560
D. Php1,440,000

A

A. Php1,324,800

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6
Q

A tract of land containing
four hectares recently sold for
Php600 per square meter. What
is the estimated land value?

A. P600,000.00
B. P2,400,000.00
C. P6,000,000.00
D. P24,000,000.00

A

D. P24,000,000.00

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7
Q
  1. A single-family residential
    located on a busy street rent for
    Php500 per month less than
    similar rental properties located
    on other streets in the same
    area. The average gross rent
    multiplier in this neighborhood is
  2. What is the lump peso
    adjustment for the locational
    obsolescence of the residence?

A. P500
B. P6,000
C. P50,000.00
D. P55,000.00

A

D. P55,000.00

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8
Q

What is the result to this
calculations: 2x5/7+ 4/5=?

A. 1.818
B. 2.080
C. 2.229
D. 2.075

A

C. 2.229

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9
Q

If a property is increasing in
value by 3.5% per year on a
straight-line basis, what is the
value of a property that was
purchased 22 months ago for
P1.550M?

A. P1,600,000
B. P1,700,000
C. 1,650,000
D. 1,750,000

A

C. 1,650,000

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10
Q

In collection data, an
appraiser concludes that
comparable properties have
increased in value at a 6-pecent
for a comparable that sold years
ago for Php1,000,000 is:

A. Php 60,000
B. Php 120,000
C. Php 123,600.00
D. Php 1,123,600.00

A

A. Php 60,000

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11
Q

The annual property tax on a
parcel of land is P5,000. The
taxing authority assessed the
land at 50% of the market value.
If the tax rate is 2% of the
assessed value, what is the
estimated market value of the
land?

A. P500,000
B. P300,000
C. P1,000,000
D. P200,000

A

A. P500,000

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12
Q

A subdivision in Quezon City
has recently voted to pave the
streets. The total cost of paving
will be Php 300 per sqm.
Property owners will be
assessed 60% of the cost. How
much would an owner with 80
sqm frontage be required to pay?

A. Php 24,000.00
B. Php 14,400.00
C. Php 9,600.00
D. Php 7,200.00

A

B. Php 14,400.00

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13
Q

A commercial property
producing an annual gross
income of P820,000 was sold
two months ago for P7,280,000.
What is the property’s gross
income multiplier?

A. 7.77%
B. 8.88%
C. 9.99%
D. 6.66%

A

B. 8.88%

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14
Q

The value of a property
consisting of land and building
with an annual net operating
income of P560,000 and with an
overall capitalization rate of
10.80% is

A. 5,200,000
B. 5,185,000
C. 5,850,000
D. 5,580,000

A

B. 5,185,000

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15
Q

A building has a rental
income of 70,200 per month.
Using an annual gross rent
multiplier of 14, the value of the
building would be estimated at

A. 11,827,700
B. 11,792,500
C. 11,975,200
D. 11,793,600

A

D. 11,793,600

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16
Q

A 10-year-old building is
currently valued at P8,950,000.
What was its original value if it
has appreciated by 55% since it
was built?

A. 6,500,000
B. 5,500,000
C. 5,774,000
D. 6,774,000

A

C. 5,774,000

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17
Q

A house and lot is priced at
P13,400,000. The lot alone is
valued at P2,512,500. What
percentage of the total asking
price is attributable to the value
of the lot?

A. 18 ¾ %
B. 18.5 %
C. 18.¼ %
D. 19 %

A

A. 18 ¾ %

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18
Q

A comparable property is
identical to the subject property
being appraised. The
comparable was sold six months
ago for P2,500,000. As the
appraiser, you must make an
adjustment for the time
difference between the subject
property and the comparable.
You have found a paired sale of
two houses, one of which was
sold one year ago for
P2,000,000, and the other sold
yesterday for P2,200,000. What
is the proper estimated adjusted
sales price for your
comparable?

A. P2,500,000
B. P2,600,000
C. P2,625,000
D. P2,650,000

A

C. P2,625,000

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19
Q

Republic Act Number 7279
authorized qualified local
government units to impose and
additional one-half percent tax
on the assessed value of all
lands in urban areas in excess of
___________.

A. Php60,000
B. Php50,000
C. Php175,000
D. Php100,000

A

B. Php50,000

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20
Q

A 8-year-old residential
apartment has a reproduction
cost of P7,850,000 broken down
into P 3,200,000 representing the
structural component, and P
4,650,000 for the other
component. The yearly
allowance for ordinary structural
deterioration is 3%, while the
depreciation rate for the curable
component is 5% per year.
Economic obsolescence results
in a rental loss of P50,000 per
year. What is the estimated value
of the building?

A. P4,777,000
B. P4,822,000
C. P4,866,000
D. P4,333,000

A

B. P4,822,000

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21
Q

The area of rectangle with a
base of 10 meters and a length
of 20 meters is

A. 250 sqm
B. 200 sqm
C. 400 sqm
D. 300 sqm

A

B. 200 sqm

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22
Q

You have a bank deposit
balance of 45,000 at the end of 4
years. If interest was
compounded at 10% per annum,
what was the original amount of
the deposit?

A. 27,000
B. 30,736
C. 28,000
D. 29,000

A

B. 30,736

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23
Q

A dormitory has 50 rooms
with an occupancy rate of 94%.
20 rooms for one bed renting for
P10,000 per month each and 30
rooms for two beds renting for
P6,000 a month on a per head
count. What is the effective
gross monthly income of the
property and the potential gross
annual income.

A. P526,400 and P6.720M
B. P650,400 and P6.750M
C. P720,410 and P6,120M
D. P550,400 and P6,100M

A

A. P526,400 and P6.720M

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24
Q

A building that has an effective gross income of P1,000,000 and total
expenses of P250,000. The building operating expense ratio is

A. 0.25
B. 0.75
C. 0.2
D. 0.8

A

A. 0.25

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25
Q

A building that has an effective gross income of P1,000,000 and total
expenses of P250,000. The building net income ratio is

A. 0.25
B. 0.75
C. 0.2
D. 0.8

A

B. 0.75

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26
Q

A real estate investor bought a 10 hectares of raw agricultural land
for Php60,000,000. If the value of raw agricultural land will normally
increase by 6% per year and inflation is estimated to be at 2% for the next
four years, what will be the projected value of the land at the end of the
fourth year taking into consideration inflation?

A. Php88,159,684.61
B. Php64,800,000.57
C. Php79,200,000.23
D. Php81,629,337.60

A

D. Php81,629,337.60

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27
Q

Consider a building that has a potential gross income of P1,000,000,
has operating expense of P250,000, and requires a debt service of
P550,000 at current interest rates. The properties break-even ratio is:

A. 0.20
B. 0.25
C. 0.55
D. 0.80

A

D. 0.80

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28
Q

A commercial property sold a month ago for P13,050,000 has
monthly gross income of P120,833. What is the GIM for the Property?

A. 0.93
B. 108
C. 9.0
D. 98.7

A

C. 9.0

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29
Q

A property with an annual net operating income of P580,000 was sold
for P5,600,000. The remaining life of the building is 25 years. Land value
is P2,200.000. What is the value of the building?

A. P2,400,000
B. P2,600,000
C. P2,800,000
D. P3,000,000

A

A. P2,400,000

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30
Q

What is the reversion value of a property with an estimated market
value of P16,480,000 3 years from now at an interest rate of 9% per year?

A. P21,342,078
B. P21,423,087
C. P12,725,584
D. P12,752,584

A

C. P12,725,584

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31
Q

If a property’s net income ratio is 0.61, what is its operating expense
ratio?

A. 0.039
B. 3.90
C. 0.39
D. 39

A

C. 0.39

32
Q

A commercial property was recently sold for P80,000,000.
Given the following information:
Gross potential income : P11,000,000
Vacancy factor : 8%
Expenses : 40% of effective gross income
Annual mortgage payment : P4,500,000
Equity : P11,500,000
What is the equity dividend rate or cash-on-cash rate of return?

A. 12.57%
B. 22.67%
C. 13.67%
D. 3.57%

Given the same information on the property above, is the overall rate
of return for the property?

A. 8.82%
B. 7.59%
C. 9.79%
D. 5.00%

A

C. 13.67%
B. 7.59%

33
Q

A property producing a gross income of P5.7685M was sold five
months ago for P15.620M. What is the property’s gross income
multiplier?

A. 3.50
B. 2.71
C. 2.40
D. 3.00

A

B. 2.71

34
Q

What is the annual rate of increase indicated by a sale of a property
at P1.350M four years ago and a resale today at P1.445M? Use the
annual straight-line method.

A. 2%
B. 7%
C. 4%
D. 9%

A

A. 2%

35
Q

The borrowers negotiated a P125,000 for 20 years at 7% interest.
Their monthly principal and interest payment is P969.12. How much
interest will the buyers pay of the life of the loan?

A. P107,588.80
B. P232,588.80
C. P175,000.80
D. P107,885.8

A

A. P107,588.80

36
Q

If the land value in a subdivision has increased by 15% this year and
the average price of land sold last year was P 3.50M, what is that average
price of the land sold today?

A. P3.378M
B. P4.025M
C. P4.742M
D. P4.575M

A

B. P4.025M

37
Q

The value of a building with a net operating income of P200,000 and
with an over-all capitalization rate of 9.5% is

A. P2,115,840
B. P2,105,000
C. P2,155,000
D. P2,001,500

A

B. P2,105,000

38
Q

If the land value in a subdivision has increased by 8% during the past
year and the average price of land sold last year was P2,750,000, what is
the average price of land sold today?

A. P2,500,000
B. P2,820,000
C. P2,920,000
D. P2,970,000

A

D. P2,970,000

39
Q

Mr. Eliot owns a parcel of land leased to Mr. Edward at an annual rental rate of P2,000,000. The lease has a remaining life of 6 years. What is the present value of the rentals if the interest rate is 10% per year? Present worth factor for annuity is 4.35526 and lump sum is 0.57655.

A. 8,710,520
B. 8,660,820
C. 9,705,240
D. 8, 865, 380

A

A. 8,710,520

40
Q

The reproduction cost new of a commercial building is estimated to
be P60,000,000. The building should have an economic life of 50 years,
and it is now eight years old. However, based on the observation of the
appraiser its effective age is similar to other 12-year-old buildings due to
poor maintenance. What is the value of the building (exclusive of land
value)?

A. P45,600,000
B. P46,500,000
C. P14,400,000
D. P14,600,000

A

A. P45,600,000

41
Q

The appropriate adjustment for time is determined to be 11% per year.
The time adjustment for a comparable property that was sold a year ago
for P13,500 per square meter is

A. Less P1,485 per square meter
B. Plus P1,485 per square meter
C. Plus P 1,584 per square meter
D. Less P 1,584 per square meter

A

B. Plus P1,485 per square meter

42
Q

Anna hired a licensed real estate appraiser to value a parcel of land
she wants to dispose. Upon investigation, the appraiser found out that a parcel of land nearby was sold recently for Php12,000 per square meter. The appraiser also gathered that the property of Anna has the following
attributes when compare to the lot sold: corner influence +8, topography
-3, shape +12. Compute the per square meter value adjustment on the
property of Anna.

A. Php2,040
B. Php2,760
C. Php2,670
D. Php2,400

A

A. Php2,040

43
Q

What is the value of a property with a building value of P5,200,000, a
land capitalization rate of 9.0%, building overall rate of 13% and net
operating income of P935,000?

A. P7,240,525
B. P6,520,880
C. P8,077.778
D. P5,662,225

A

C. P8,077.778

44
Q

Subject of the appraisal is 5-bedroom house. Based on the following
paired data gathered, what would be the estimated value of the subject of
appraisal?
Market data:
4-bedroom house was recently sold for P 8,620,000
3-bedroom house was recently sold for P 8,380,000

A. 8,860,000
B. 8,880,000
C. 8,800,000
D. 8,870,000

A

A. 8,860,000

45
Q

A residential house was constructed in 2003 for P 15,730,000. The
cost index published at that time was 167.80. The current cost index
from the same cost reporting service is 396.20. What is the current
indicated reproduction cost of the residential house?

A. 35,740,000
B. 37,140,000
C. 28, 440,000
D. 46, 660,000

A

B. 37,140,000

46
Q

What is the indicated value of a 8-year-old building with a floor area of
480 square meters, if the current cost of construction of similar buildings
is P18,000 per square meter of the floor area, and the estimated depreciation of the building is 3.5% per year?

A. P6,220,800
B. P6,020,800
C. P6,880,800
D. P8,640,000

A

A. P6,220,800

47
Q

Assume the following:
Annual net operating income of the property : P 1,700,000
Land value : P 5,000,000
Interest Value : 11%
Recapture rate: 3.5%
What is the building value by the building residual technique?

A. P7,931,034
B. P12,931,034
C. P11,931.034
D. P8,931,034

A

A. P7,931,034

48
Q

A house and lot is priced at P6,000,000. The lot alone is valued at
P2,025,000. What is the percentage of the total asking price that is
attributed to the house?

A. 33 ¾
B. 33 ¼
C. 66 ¼
D. 66 ¾

A

C. 66 ¼

49
Q

A property was sold for P90,000,000. Using the land-to-building ratio
of 3:5. What is the value of the building?

A. P33,750,000
B. P56,250,000
C. P54,000,000
D. P36,000,000

A

B. P56,250,000

50
Q

A vacant lot is rented for a car display for P28,000 per month. The
interest rate applicable to this type of property is 9.5%. Compute the
value of the property by income approach.

A. 3,800,000
B. 4,386,842
C. 3,600,000
D. 3,536,000

A

D. 3,536,000

51
Q

A lessee is renting a commercial space with a base rent of P10,000
per month plus 3% of the gross sales exceeding P110,000 per month. The
lessee’s gross sales last year was P2,200,000. How much rent was paid
last year?

A. P146,000
B. P184,000
C. P144,000
D. P164,000

A

A. P146,000

52
Q

What would be recapture rate of a building having a remaining
economic life of 16 years?

A. 6.52%
B. 8.50%
C. 5.62%
D. 6.25%

A

D. 6.25%

53
Q

A commercial establishment has depreciated by 50% since it was
built 30 years ago. If it would cost P 42,500,000 to build today, and if
similar sites are for P 36,000,000, what is the estimated market value of
the property today?

A. P57,250,000
B. P48,680,000
C. P55,750,000
D. P44,250,000

A

A. P57,250,000

54
Q

In a property residual capitalization approach, what is the value of an
improved property with a net income of P320,000 a year, an interest rate
of 6% and a recapture rate of 4%?

A. P3,200,000
B. P5,333,333
C. P3,840,000
D. P4,333,333

A

A. P3,200,000

55
Q

A 20-year mortgage covering 80% of property value can be obtained
from a bank for 7.5%. The mortgage constant is 0.098. Equity for this
type of property requires 15% return.

A. 10%
B. 9.90%
C. 10.96%
D. 10.84%

A

D. 10.84%

56
Q

Mr. Santos is leasing a 80-square meter commercial space for P4,000
per square meter per year. Research indicates that similar spaces have a
going market rate of P4,400 per square meter per year. What is the rental
gain realized by Mr. Santos per year?

A. P32,000
B. P24,000
C. P3,200
D. P2,400

A

A. P32,000

57
Q

A property with an annual net income of P440,000 was sold for
P5,500,000. The remaining life of the building is 25 years. Land value is
P2,600,000. What is the overall rate for the property?

A. 7%
B. 8%
C. 9%
D. 10%

A

B. 8%

58
Q

Your client bought a property consisting of 8 hectares, 65 ares and
400 centares. As an appraiser, he asked you what is the total land area in
square meters?

A. 8,690 sqm
B. 86,900 sqm
C. 860 sqm
D. 869,000 sqm

A

B. 86,900 sqm

59
Q

A commercial structure is a rectangle with sides of 60 meters and
125 meters and the current local cost to build a similar structure is
P15,500 per square meter. What is the estimated construction cost of the
structure?

A. P161,750,000
B. P116,750,000
C. P161,250,000
D. P116,250,000

A

D. P116,250,000

60
Q

Determine the amount of concrete needed, IN CUBIC FEET, to fill a cylindrical hole with a radius of 1 meter and depth of 3 meters. (Let
pi=3.141)

A. 166.3
B. 83.34
C. 332.66
D. 1331.36

A

C. 332.66

61
Q

100-unit apartment complex includes 60 one-bedroom and 40 two-bedroom units that are rented out for Php4,000.00 and Php7,000.00
respectively. The apartment complex has vacancy rate of 5%, a miscellaneous income of Php50,000.00 per year and an annual operating
expense of Php600,000.00. Compute the potential gross income of the apartment complex.

A. Php6,240,000.00
B. Php5,928,000.00
C. Php6,290,000.00
D. Php5,978,000.00

A

A. Php6,240,000.00

62
Q

A house and lot was purchased for Php 15,000,000.00. The house
alone was valued at Php 8,000,000. Compute the ratio of the house to the
total purchased price

A. 66.67%
B. 76.66%
C. 33.33%
D. 56.67%

A

D. 56.67%

63
Q

The trapezoidal residential in Cavite City is measured at 40 meters at its longer base, 30 meters at the shorter base and 20 meters depth and cost Php4,000 per square meter. The property has a 20% corner influence and a topography disadvantage of 5%. Compute the value of the residential lot

A. Php3,500,000
B. Php3,220,000
C. Php3,500,000
D. Php3,360,000

A

B. Php3,220,000

64
Q

In a residential area, a square lot with an area of 625 square meter is price at Php8,000,000.00. If one side of the square is increased by 5 meters and the other side of square is decreased by 6 meters, determine the price of the resized residential lot using the given data/information

A. Php7,680,000
B. Php5,120,000
C. Php11,520,000
D. Php8,000,000

A

A. Php7,680,000

65
Q

Your client bought a property consisting of 26 hectares, 98 ares, and 300 centares. As recognized expert, he asks you what is the total and area of the property in square meters?

A. 27, 001
B. 270,010
C. 270,100
D. 2,700,100

A

C. 270,100

66
Q

What is the applicable monthly percentage tax if John annual rental income is 1,612,800 on her 15-door apartment?

A. 6,720.00
B. 14,400.00
C. 8,378.00
D. 4,032.00

A

D. 4,032.00

67
Q

A commercial rectangular lot with a measurement 25 meters by 30
meters and has a unit value of Php15,000 per square meter based on the schedule of market value of the assessor. Compute the total real property tax (Basic and SEF) to be paid using the maximum assessment level for a
commercial land and maximum basic and SEF tax rate of a city

A. Php168,750
B. Php112,500
C. Php140,625
D. Php45,000

A

A. Php168,750

68
Q

A house and lot is priced at Php6,800,000. The lot alone is valued at Php1,700,000. What percentage of the value of the property is
attributable to the house?

A. 40%
B. 50%
C. 75%
D. 25%

A

C. 75%

69
Q

A client requested you to estimate the value of a house and a 400sqm lot she wanted to buy. An Architect advised her that the reproduction cost to duplicate the house is P3.5M which has an effective age of 15 years with an economic life of 40 years. As Real Estate Appraiser how much is the appraisal value of the property, if your client is willing to pay P7,000 per sqm.? (Round-off answer to the nearest figure)

A. P4,587,500
B. P4,987,500
C. P4,787,500
D. P4,398,500

A

B. P4,987,500

70
Q

A piece of property was bought in the year 2012 for a price of Php5,000,000. Per declaration of the Philippines Statistical Authority (PSA), year 2012 is the base year if the consumer price index (CPI). If the CPI for real estate sector in 2017 is 1.45, determine cost of the same piece of property using the CPI.

A. Php7,000,000
B. Php4,448,275
C. Php5,000,000
D. Php7,250,000

A

D. Php7,250,000

71
Q

What is the MINIMUM lot area in the square feet for a single detached type of housing in a socialized housing project?

A. 592.01
B. 775.00
C. 688.89
D. 516.67

A

C. 688.89

72
Q

In order to buy a commercial building, it requires an equity investment of Php 20,000,000.00. Annual cash flow is expected to be Php
2,000,000.00. Compute the payback period

A. 20 years
B. 5 years
C. 10 years
D. 15 years

A

C. 10 years

73
Q

An investor purchased a commercial condo unit with an equity of Php1,000,000.00 and a mortgage loan of Php8,000,000 at 6% interest
rate for eight years. Compute the total amount of interest paid at the end of the eight year If the monthly payment for the loan is Php105,131.44

A. Php3,092,618.00
B. Php2,920,618.00
C. Php3,920,618.00
D. Php2,092,618.00

A

D. Php2,092,618.00

74
Q

Maria owns a house valued at Php5,000,000.00. What is the percentage loss of Maria if she sell her house for Php3,500,000.00 to cover another debt?

A. 50%
B. 30%
C. 40%
D. 20%

A

B. 30%

75
Q

Popularly known as “The Rule of 72”; A Rule of thumb method that determines a Rate of return which is given, as 12% per period. How many
periods will it take to double an investment of 12% per period?

A. 4.8
B. 24
C. 6
D. 2.4

A

C. 6

76
Q

Popularly known as “The Rule of 72”; A Rule of thumb method that determines a Rate of return which is given, as 12% per period. How many
periods will it take to double an investment of 12% per period?

a. 4.8
b. 24
c. 6
d. 2.4

A

c. 6

77
Q
A

BS REM (15 decks)

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