unit 1

Question 1

equation to find part

Answer 1

total x rate

Question 2

equation to find total

Answer 2

total / rate

Question 3

equation to find rate

Answer 3

part / total

Question 4

equation to find interest

Answer 4

part = total x rate x time

Question 5

equation for linear measurement

Answer 5

area = length x width

Question 6

equation for linear measurement of a triangle

Answer 6

area = (length x width) / 2

Question 7

equation for volume

Answer 7

volume = length x width x height

Question 8

calendar year

Answer 8

365 days

Question 9

statutory year

Answer 9

30 days month / 360 days a year

Question 10

Under Texas law, who owns the property on the day of closing, and therefore is responsible for any expenses up to that day (or is owed any rents on a rental property up to that day)?

Answer 10

Under Texas law, the seller owns the property on the day of closing and is responsible for expenses and/or may collect rents.

Question 11

The seller owes $2,400 in taxes for the current year. With a May 28 closing date and using a calendar year, the seller will be debited how much? (Assume it isNOTa leap year.)

Answer 11

$973.10

Question 12

The seller wants to net $65,000 from the sale of his house after paying the broker’s fee of 6%. His gross sales price will be

Answer 12

$69,149.

Question 13

The seller offers to take back a second mortgage of $25,000 at a simple interest rate of 4.5%. The loan is amortized over 10 years. How much is the buyer paying on the second?

Answer 13

$217.70 per month

Question 14

In 2016, taxes on Don Mark’s home were paid in full and amounted to $1,468. He sold the home to Chuck Harris and closed the sale on August 29, 2017. What was the prorated tax amount, using a statutory year and prorating through the day of closing?

Answer 14

$974.40

Question 15

How much interest will the seller owe the buyer for a closing date of August 10 if the outstanding loan balance is $43,580? The interest rate on this assumable loan is 10.5% , and the last payment was paid on August 1. Prorations are to be done through the day of closing, using a statutory year.

Answer 15

$127.11

Question 16

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

Answer 16

27,225

Question 17

If a lender agrees to an $80,000 loan at 9% for 15 years with 2 loan discount points, what amount will be charged at closing for the points?

Answer 17

$1,600

Question 18

To determine rate when the amounts of the part and the total are known,

Answer 18

divide the part by the total (part ÷ total = rate).

Question 19

How many square feet are in a right triangle property that is 600 feet at the base and 400 feet on the right side?

Answer 19

120,000 square feet

Question 20

5% of 1,500 =

Answer 20

75.

Question 21

What is a loan discount point?

Answer 21

A discount point is an up-front amount paid to the lender that has the effect of lowering a monthly payment.

Question 22

What is the area of a triangle that is 24 feet by 36 feet?

Answer 22

432 square feet

Question 23

The listing agent recommends placing a home on the market for $450,000, paying a 6% commission – 2.5% going to the selling (buyer’s) agent. The sellers like the price but refuse to pay more than 5.5% commission (and approve 2.5% to the agent bringing the buyer). Meanwhile, a buyer signs a buyer agent agreement that states the buyer agent’s compensation will be equal to one-half of the total amount of commission paid (a 50-50 commission split). The buyer and the seller negotiate the final sales price at $420,000. How much will the buyer agent receive?

Answer 23

$11,550 ($10,500 from the commission, plus $1,050 from the buyers)

Question 24

What is the total cost of a driveway that is 15 feet wide, 40 feet long, and 4 inches thick if the concrete costs $60 per cubic yard and the labor costs $1.25 per square foot?

Answer 24

$1,194.00

Question 25

When computing prorations, Texas-promulgated sales contracts provide that

Answer 25

the seller owns the property on the day of the closing.

Question 26

The area of what shape is calculated as “base times height divided by two”?

Answer 26

Triangle

Question 27

Quick percentages: A “fourth” or a “quarter” of something equals

Answer 27

25%.