Upgrade to remove ads
Only $2.99/month

National Math Module

Terms in this set (84)

Terry bought a home that home that had an attached one-car garage and a screened porch that spanned the length of the home. If the garage measured 16' in depth which was half the depth of the house and the screened porch was 64' in width, what is the GLA of the house?

1,024 SF
2,048 SF
3,072 SF
4,096 SF
2,048 SF

16 x 64 = 1,024
1,024 x 2 = 2,048
A seller leaves a buyer approximately one half of a tank of heating oil at the closing. If the tank measures 4' x 2' x 3', how many cubic feet did the buyer receive?

8 cubic feet
24 cubic feet
12 cubic feet
24 square feet
12 cubic feet

4 x 2 x 3 = 24
24/2 = 12
If a square-shaped lot measures 200' on one side, what is the square footage of the lot?

4,000
40,000
400
40
40,000

200 x 200 = 40,000
A developer wants to develop a 20-acre subdivision. He figures that the streets and common area will take up about 25% of this overall area. If the minimum lot size is to be 10,000 SF, how many lots can the developer have on this property?

43
65
86
66
65

20 x .25 = 5
20 - 5=15
15 x 43560 = 653,400
653,400/10,000 = 65.34
John bought an odd-shaped lot that was 100 feet deep, but the front footage was 160 feet and the length of the back side of the lot was 80 feet. What is the square footage of his lot?

16,000 SF
8,000 SF
24,000
12,000 SF
12,000 SF

160 + 80 = 240
240/2 = 120
120 x 100 = 12,000
If an investor wants to combine a 3/4 acre parcel with a 1.6 acre parcel, how big will the parcel be, expressed as a decimal?

2.35 acres
2.5 acres
2.6 acres
2.85 acres
2.35

3/4 = .75
.75 + 1.6 = 2.35
A property is being appraised by the cost approach. The appraiser estimates that the land is worth $17,000 and the replacement cost of the improvements is $235,000. Total depreciation from all causes is $23,000. What is the indicated value of the property?

$229,000
$275,000
$252,000
$212,000
$229,000

17,000 + 235,000 - 23,000 = 229,000
A property has a net income of $770,000 and sells for $9,800,000. What is its cap rate?

0.079
0.127
0.092
0.113
0.079

770,000/9,800,000 = 0.079
The owner of a $200,000 property decided to buy a new $15,000 roof (which added no value to the property). The economic life of the roof is 12 years. Assuming the straight-line method of depreciation, what is the depreciated value of the property (attributable to the roof) after 2 years?

$202,500
$200,000
$197,500
$187,500
$197,500

15,000/12 = 1,250
1,250 x 2 = 2,500
200,000 - 2,500 = 197,500
What is the GIM of a strip mall with annual income of $547,500 and a value of $6,345,000?

8.6
139.1
103.2
11.6
11.6

6,345,000/547,500 = 11.6
A commercial property sold recently for $620,000. The property had an NOI, or net income, of $45,000. What was the capitalization rate at which this property sold?

0.072
0.138
0.045
0.062
0.072

45,000/620,000 = 0.072
What is the GIM of a gas station with Annual rent of $104,400 and a value of $970,000?

8.3
9.3
10.3
99.9
9.3

970,000/104,400 = 9.3
The Browns obtain a fixed-rate amortized 30-year loan for $310,000 @ 6% interest. If the monthly payments are $1,815, how much interest do the Browns pay in the first month of the loan?

$1,815
$1,550
$265
$1,495
$1,550

310,000 x .06 = 18,600
18,600/12 = 1,550
A loan applicant has an annual gross income of $76,000. How much will a lender allow the applicant to pay for monthly housing expense to qualify for a loan if the lender uses an income ratio of 30%?

$2,280
$2,400
$2,700
$1,900
$1,900

76,000 x .3 = 22,800
22,800/12 = 1,900
How much is a discount point?

1/8% of the loan amount
$1,000
1% of the loan amount
$100
1% of the loan amount
A home buyer pays $1,800 / month for the interest-only loan on his new house. The loan's interest rate is 6%. If he obtained a 80% loan, what was the purchase price?

$216,000
$275,000
$450,000
$360,000
$450,000

1,800 x 12 = 21,600
21,600/.06 = 360,000
360,000/.8 = 450,000
If you owe $14,000 on a new loan and pay $880 of interest for the year, your interest rate is?

0.048
0.123
0.057
0.063
0.063

880/14000 = 0.063
A loan applicant has an annual gross income of $42,000. How much will a lender allow the applicant to pay for monthly housing expense to qualify for a loan if the lender uses an income ratio of 32%?

$1,344
$1,000
$853
$1,120
$1,120

42,000 x .32 = 13,440
13,440/12 = 1,120
An investment property generates a cash flow of $550,000 and has a ROI of 12%. What is the value of the property assuming the numbers above (to the nearest thousand)?

$4,583,000
$66,000
$6,111,000
$2,619,000
$4,583,000

550,000/.12 = 4,583,000
A home that was purchased for $440,000 with a $320,000 loan is now worth $530,000. The current loan balance is $280,000. What is the homeowner's equity?

$120,000
$160,000
$250,000
$280,000
$250,000

530,000 - 280,000 = 250,000
An apartment complex generates $778,000 in effective rental income and $7,000 in other income. The same complex has $378,000 in operating expenses and $12,000 as reserves. What is the net operating income of the complex?

$395,000
$407,000
$400,000
$387,000
$395,000

778,000 + 7,000 = 785,000
785,000 - 378,000 = 407,000
407,000 - 12,000 = 395,000
An office building has NOI of $110,000, interest expense of $47,000 and annual depreciation of $16,000. Assuming a 28% tax bracket, what is its income tax liability?

$17,640
$28,000
$10,640
$13,160
$13,160

110,000 - 47,000 - 16,000 = 47,000
47,000 x .28 = 13,160
A homeowner paid $385,000 in cash for a house three years ago. The house sold today for $413,000. How much has the property appreciated in total?

$9,000
$33,000
$28,000
$10,000
$28,000

413,000 - 385,000 = 28,000
A building generates $87,000 NOI after expenses and has a debt payment of $33,000. What is its cash flow?

$54,000
$87,000
$120,000
$38,000
$54,000

87,000 - 33,000 = 54,000
The sellers, Mr. and Mrs. Hernandez, listed their property for $112,000 and agreed to an exclusive right to sell listing agreement at a 4% commission to be paid to Lucky Nines Estate Company at closing. The sellers sold the property themselves during the listing period for $106,000. How much commission, if any, would Lucky Nines Real Estate Company be entitled to at closing?

$4,240
$4,480
$0
$4,360
$4,240

106,000 x .04 = 4,240
A town has a total assessed valuation of $32,000,000 and exemptions of $7,000,000. What is the tax base?

$39,000,000
$25,000,000
$32,000,000
$29,500,000
$25,000,000

32,000,000 - 7,000,000 = 25,000,000
A town has a tax base of $88,000,000 and a total assessed valuation of $99,000,000. What is the total amount of the town's tax exemptions?

$9,000,000
$11,000,000
$187,000,000
$1,100,000
$11,000,000

99,000,000 - 88,000,000 = 11,000,000
Chloe wants to net $50,000 on her house. Her closing costs will be $8,000 plus a 7% commission. She owes $200,000 on her loan. What is the minimum contract price that she can accept for her property?

$268,817
$277,419
$223,656
$286,654
$277,419

200,000 + 50,000 + 8,000 = 258,000
100% - 7% = 93%
258,000/.93 = 277,419
A restaurant generates $72,000 in sales per month. The lease calls for 2.2% percentage rent. What is the monthly rent amount?

$1,584
$2,160
$1,440
$1,100
$1,584

72,000 x .022 = 1,584
A town has a tax base of $74,000,000 and a budget of $600,000. What is the tax rate in terms of mills?
12.3 mills
10 mills
8.1 mills
15.2 mills
8.1 mills

600,000/74,000,000 = 0.0081
0.0081 x 1,000 = 8.1
Sheryl's home is valued at $280,000. She has insurance coverage of $200,000 with an 80% co-insurance clause. If Sheryl has a damage claim amounting to $150,000, how much will she receive from her policy?

$107,140
$120,000
$133,929
$160,000
$133,929

280000 x .8 = 224,000
200,000/224,000 = 0.89
0.89 x 150,000 = 133,929
A property's real estate taxes are $1,400, and this amount is paid in arrears. The closing was on August 7th (day 219 of the year). How much did the seller have to pay the buyer for his/her share of the taxes? Assume the taxes remain the same, the seller owns the day of closing, and use the 365-day method.

$556
$560
$840
$844
$840

1,400/365 = 3.84
3.84 x 219 = 840
The Saunders carry a property insurance policy which covers 78% of the replacement cost of their insurable property, valued at $200,000. They have an 85% co-insurance requirement in the policy. If the family incurs a $170,000 loss, what amount will the Saunders recover?

$144,500
$132,600
$148,750
$156,000
$156,000

200,000 x .78 = 156,000
A property's real estate taxes are $1,000, and this amount is paid in arrears. The closing was on May 5th. How would the entry read on the closing statement? Assume the taxes remain the same, the seller owns the day of closing, and use the 360-day method.

Credit the buyer $347.22, debit the seller $347.22
Debit the buyer $347.22, credit the seller $347.22
Credit the seller $342.47, debit the buyer $342.47
Debit the buyer $342.47, credit the seller $342.47
Credit the buyer $347.22, debit the seller $347.22

1,000/12 = 83.33
83.33/30 = 2.78
(83.33 x 4) + (2.78 x 5) = 333.32 + 13.90 = 347.22
Assuming the FHA qualifies borrowers based on a 31% debt ratio, if a borrower's monthly gross income is $4,400, what monthly payment for housing expenses can this person afford based on this ratio?

$3,036
$4,400
$1,364
$1,244
$1,364

4,400 x .31 = 1,364
A homeowner bought a house one year ago for $250,000. Since then, the homeowner has spent $4,000 to pave the driveway and has added a screen porch at a cost of $3,000. Total depreciation has been $6,000. What is the homeowner's adjusted basis?

$257,000
$251,000
$263,000
$237,000
$251,000

250,000 + 4,000 + 3,000 - 6,000 = 251,000
Land sells for $9,000 an acre. What will 750,000 SF of land sell for? Round to the nearest thousand.

$105,000
$16,000
$129,000
$155,000
$155,000

1 acre = 43,560 sq ft
750,000/43,560 = 17.22
17.22 x 9,000 = 154,958
How many acres are there in the N ½ of the NE ¼ and the NE ¼ of the SE ¼ of a section?

20 acres
40 acres
80 acres
120 acres
120 acres

1 section = 640 acres

640/4 = 160
160/2 = 80
160/4 = 40
80 + 40 = 120
If a square-shaped lot measures 125' on one side, what is the square footage of the lot?

250'
15,625 square feet
500'
1,855 square feet
15,625 square feet

125 x 125 = 15,625
If a borrower's monthly interest payment on an interest-only loan at an annual interest rate of 7.3% is $877, how much was the loan amount (rounded to the nearest hundred)?

$120,100
$100,300
$144,200
$134,200
$144,200

877 x 12 = 10,524
10,524/.073 = 144,200
Stacey owns a lot that has 180 feet of front footage and contains 36,000 square feet. He purchases two identically-sized lots adjacent to each side of his lot. These side lots are each 200 feet deep and each side lot contains 19,000 square feet. What is the total front footage of all three lots?

190
200
275
370
370

36,000 + 19,000 + 19,000 = 74,000
74,000/200 = 370
A home sells for $150,000 and has a mortgage loan balance of $100,000 at closing. If the commission is 5% and other closing costs are $6,000, what is the seller's net?

$44,000
$40,000
$32,250
$36,500
$36,500

150,000 x .05 = 7,500
7,500 + 6,000 + 100,000 = 113,500
150,000 - 113,500 = 36,500
If a buyer purchases 25% of a lot in the spring and then purchases 50% more later in the fall, what percentage of the lot is still available for purchase?

20%
25%
50%
75%
25%

100% - 50% - 25% = 25%
A rented office space has a monthly income of $3,800. A suitable gross income multiplier derived from market data is 11.1. What would the estimated value be? Round to the nearest $1,000.

$380,000
$422,000
$506,000
$342,000
$506,000

3,800 x 12 = 45,600
45,600 x 11.1 = 506,000
11 of 50 - The annual property taxes of $1,700 were paid in arrears by the buyer. If the closing took place on June 4th and the seller paid through the day of closing, how did this appear on the settlement sheet if the 360-day method is used?

$727 DS, CB
$727 DB, CS
$973 DS, CB
$973 DB, CS
$727 DS, CB

1,700/12 = 141.67
141.67/30 = 4.72
141.67 x 5 = 708.35
4.72 x 4 = 18.88
708.35 + 18.88 = 727
A property is being appraised using the income capitalization approach. Annually, it has an estimated gross income of $48,000, vacancy and credit losses of $3,600, and operating expenses of $15,000. Using a capitalization rate of 8%, what is the property's value (rounded up to the nearest $1,000)?

$413,000
$368,000
$340,000
$600,000
$368,000

48,000 - 3,600 - 15,000 = 29,400
29,400/.08 = 368,000
Violet has a FHA loan for $90,000. The lender is requiring a 1% discount point to the lower the interest rate. What amount is the lender charging for the discount point?

$600.00
$90.00
$900.00
$1,000.00
$900.00

90,000 x .01 = 900
A home seller wants to net $15,000. If he has agreed to pay a 5% commission, the loan payoff is $94,000 and closing costs are $16,000, what must the minimum listing price be? Round to the nearest $100.

$125,000
$130,700
$136,300
$131,600
$131,600

15,000 + 94,000 + 16,000 = 125,000
100% - 5% = 95 %
125,000/.95 = 131,600
Ralph is buying Terry's house. The buyer's loan amount is $105,580. If the buyer has agreed to pay 3 points at closing, how much will he pay for the points?

$4,223
$1,584
$396
$3,167
$3,167

105,580 x .03 = 3,167
A borrower obtains a 30-year $210,000 amortized loan at a 6% interest rate. If his monthly payment is $1199.10, how much is applied to the principal balance in the first month?

$143.54
$144.94
$169
$149.10
$149.10

210,000 x .06 = 12,600
12,600/12 = 1,050
1,199.10 - 1,050 = 149.10
Six years ago a commercial property owner paid $490,000 for her complex which included 10 acres of land valued at $100,000. Using a 40-year straight-line depreciation method, what would be the current value of the apartment complex?

$330,000
$390,000
$400,000
$431,500
$431,500

490,000 - 100,000 = 390,000
390,000/40 = 9,750
9,750 x 6 = 58,500
490,000 - 58,500 = 431,500
An apartment building that sold for $780,000 had a monthly gross income of $8,000. What is its monthly gross rent multiplier?

97.5
62.4
103
158
97.5

780,000/8,000 = 97.5
A lender determines that a homebuyer can afford to borrow $220,000 on a mortgage loan. The lender requires an 85% loan-to-value ratio. How much can the borrower pay for a property and still qualify for this loan amount (to the nearest $1,000)?

$187,000
$243,000
$254,000
$259,000
$259,000

220,000/.85 = 259,000
What is 25% converted to a decimal?

25.0
2.50
0.25
0.025
0.25
Sean, age 37, sold the home he purchased three years ago and now rents an apartment. He had originally purchased his home for $86,500 and sold it for $115,300. What is Sean's capital gain?

$11,320
$16,980
$28,800
$0
$28,800

115,300 - 86,500 = 28,000
A house is sold for $105,500 and the commission rate is 6 percent. If the commission is split 60/40 between the selling broker and the listing broker, respectively, and each broker splits his share of the commission evenly with his salesperson, how much will the listing salesperson receive from this sale?

$1,266
$2,532
$3,165
$1,899
$1,266

105,500 x .06 = 6,330
6,330 x .6 = 3,798
6,330 x .4 = 2,532
2,532/2 = 1,266
Assuming that the listing broker and the seller broker in a transaction split their commission equally, what was the sales price of the property if the commission rate was 6 ½ percent the listing broker received $5,187?

$159,600
$79,800
$119,700
$179,800
$159,600

5,187/.065 = 79,800
79,800 x 2 = 159,600
A tax rate on a building with a $530,000 taxable value is 4.5 mills per thousand dollars of assessed valuation. What is the annual tax liability?

$23,850
$1,590
$2,385
$15,900
$2,385

530,000 x .045 = 23,850
23,850/10 = 2,385
A five-sided lot has the following dimensions: side A = 44', side B = 67', side C = 91', side D = 18', and side E = 55'. What is the perimeter of the lot?

257 feet
220 feet
320 feet
275 feet
275 feet

add all sides together for perimeter
Two parcels of land priced at $1,200 per acre were purchased. One parcel was 15 acres in size and the other was 1 mile square in size. How much did these two parcels cost together?

$180,000
$640,000
$786,000
$1,020,000
$786,000

1 sq mi = 640 acres
640 + 15 = 655
655 x 1,200 = 786,000
Amy agreed to a contract price of $100,000 for a home and secured a mortgage loan for $80,000. If the appraised value is $110,000, what is the loan to value ratio?

100%
82%
80%
125%
80%

80,000/100,000 = 0.8
A sale transaction closes on April 15th. The day of closing belongs to the seller. Real estate taxes for the year, not yet billed, are expected to be $2,110. According to the 365-day method, what is the seller's share of the tax bill?

$626
$675
$607
$721
$607

2,110/365 = 5.78
Jan = 31
Feb = 28
Mar = 31
Apr = 15
31 + 28 + 31 + 15 = 105
105 x 5.78 = 607
The current value of a property is $60,000. For real estate tax purposes, the property is assessed at 30 percent of its current value, with an equalization factor of 1.25 applied to the assessed value. If the tax rate is $4 per $100 of assessed valuation, what is the amount of tax due on the property?

$720
$900
$1,800
$2,250
$900

60,000 x .3 = 18,000
18,000 x 1.25 = 22,500
22,500 x .04 = 900
A building generates $103,000 in effective rental income and $900 in vending machine income. The same complex has $40,700 in operating expenses and $36,000 in debt service payments. What is the pre-tax cash flow of the complex?

$26,300
$67,900
$27,200
$62,300
$27,200

103,000 + 900 = 103,900
103,900 - 40,700 - 36,000 = 27,200
A property currently valued at $450,000 is expected to appreciate 8% each year for the next 3 years. What will be its appreciated value at the end of this period?

$524,880
$566,870
$474,000
$558,000
$566,870

8% + 100% = 108% = 1.08
450,000 x 1.08 x 1.08 x 1.08 = 566,870
A seller wants to net $55,614 from the sale of her house after paying a 7% commission. Her minimum sales price will have to be?

$55,341
$59,506
$59,800
$63,000
$59,800

100% - 7% = 93%
55,614/.93 = 59,800
If a house sold for $40,000 and the buyer obtained an FHA-insured mortgage loan for $38,600, how much money would be paid in discount points if the lender charged four points?

$1,600
$1,544
$1,500
$385
$1,544

38,600 x .04 = 1,544
A seller of a property, listed at $200,000, accepted a 90% offer. The home appraised at $185,000 and the buyers obtained a loan for 85% for 30 years at 5% interest. What is the first month's interest?

$637.50
$7,650
$737.50
$6,750
$637.50

200,000 x .90 = 180,000
180,000 x .85 = 153,000
153,000 x .05 = 7,650
7,650/12 = 637.50
A strip mall generates $215,000 in effective rental income and $3,000 in other income. The same mall has $102,000 in operating expenses and $15,000 as reserves. What is the net operating income of the strip mall?

$113,000
$99,000
$101,000
$116,000
$101,000

215,000 + 3,000 = 218,000
218,000 - 102,000 - 15000 = 101,000
What is the volume of a 90' x 20' x 12' house?

21,600 cubic feet
1,800 cubic feet
3,750 cubic feet
36,000 cubic feet
21,600 cubic feet

90 x 20 x 12 = 21,600
A fine jewelry store leased a space at the mall with a base rent of $1,800 a month, plus 4% of all sales over $200,000. If the gross sales were $325,000, what was the total amount of rent paid by Heinz Fine Jewelry at the end of the year?

$26,600
$21,600
$125,000
$5,000
$26,600

1800 x 12 = 21,600
325,000 - 200,000 = 125,000
125,000 x .04 = 5,000
21,600 + 5,000 = 26,600
What is 0.0475 converted to a percentage?

4.75%
0.475%
47.5%
475%
4.75%
A sale transaction on rental property closes on December 10th. The landlord received the December rent of $4,400 on December 1. Assuming the closing day is the seller's, and that the 360-day method is used for prorating, how much will the seller owe the buyer?

$1,419
$1,467
$2,933
$2,981
$2,933

4,400/30 = 146.67
146.67 x 10 = 1,466.67
4,400 - 1,466.67 = 2,933
Shelly bought a house five years ago for $150,000 and obtained an 80% loan. Now the home is worth $140,000 and her loan balance has been reduced by $12,000. What is Shelly's current equity?

$32,000
$42,000
$44,000
$2,000
$32,000

150,000 x .8 = 120,000
120,000 - 12,000 = 108,000
140,000 - 108,000 = 32,000
An FHA-insured loan in the amount of $57,500 at a 6 ½% interest rate for 30 years was closed on March 17. The first monthly payment is not due until May 1. If the interest is paid monthly in arrears, how much pre-paid interest does the buyer owe at closing? (Use a 360-day year)

$145.32
$311.52
$551.20
$3,737.50
$145.32

57,500 x .065 = 3737.50
3737.50/360 = 10.38
March 17 - 30 = 14 days
10.38 x 14 = 145.32
If the roof a property cost $14,000 and its economic life is 18 years, what would its value be after four years using a straight-line method of depreciation?

$13,222
$9,240
$10,889
$12,666
$10,889

14,000/18 = 777.78
777.78 x 4 = 3,111.11
14,000 - 3,111.11 = 10,889
If a hotel has an annual Net Operating Income of $812,000 at a 9.35% cap rate, what is its current value (to the nearest thousand)?

$7,592,000
$9,350,000
$8,684,000
$6,767,000
$8,684,000

812,000/.0935 = 8,684,000
Agent Daisy agrees to a 5% commission to list a home at $330,000. The property is sold through another cooperating brokerage with that firm to receive 50% of the total commission on the $330,000 sale. If Daisy receives 55% of her broker's commission and does not bring the buyer. How much does Daisy's broker receive from the sale?

$16,500
$8,250
$4,537.50
$3,712.50
$3,712.50

330,000 x .05 = 16,500
16,500/2 = 8,250
8,250 x .55 = 4,537.50
8,250 - 4,537.50 = 3,712.50
A 198-foot x 330-foot lot sold for $30,000. What was the price per acre?

$20,000
$21,780
$30,000
$43,560
$20,000

198 x 330 = 65,340

(43,560 sq ft/acre)

65,340/43,560 = 1.5
30,000/1.5 = 20,000
If a corporate building has nine office suites that rents for $14,800 per month each, but suffers from a 14% vacancy rate and annual expenses of $21,100, what is the NOI of the building (round to the nearest $100)?

$93,500
$1,353,500
$133,200
$84,600
$1,353,500

9 x 14,800 = 133,200
133.200 x 12 = 1,598,400
1,598,400 x .14 = 223,776
1,598,400 - 223,776 = 1,374,624
1,374,624 - 21,000 = 1,353,500
If a lot contains 48,000 square feet and is 240' wide, how deep is the lot?

480'
240'
200'
720'
200'

48,000/240 = 200
What is the number one rule of adjusting properties when using the sales comparison approach to value?

If the comparable is inferior to the subject, subtract value from the comparable.

If the comparable is superior to the subject, add value to the comparable.

Never adjust the subject property

Always use assessed value, not market value
Never adjust the subject property
If one discount point costs the borrower 1% of the loan amount and increases the lender's yield by 1/8th of one percent, how many discount points must be purchased to lower the interest rate by 1%?

1
4
8
16
8

1/8 = 0.125
1/.0125 = 8
A buyer secured a $‎125‎,‎000 ‎loan at ‎4‎.‎5‎% ‎interest rate‎. To receive a lower interest rate, the buyer was required to buy down three discount points. How much were the discount points?

$3,550.00
$3,750.00
$4,250.00
$3,892.00
$3,750.00

125,000 x .03 = 3,750
THIS SET IS OFTEN IN FOLDERS WITH...