Real Estate All Math

Question 1

A building was sold for $360000 with the purchaser putting 10% down and obtaining a loan for the balance. The lending institution charged a 1% loan origination fee. What was the total cash used for the purchase?

Answer 1

$39,240 pg 284

Question 2

if a house was sold for $140,000 and the buyer obtained an FHA-insured mortgage loan for $133,700 how much money would the buyer pay in discount point if the lender charged two points?

Answer 2

$2,647 pg284

Question 3

the commission rate if 7.75% on a sale of $250,000. What is the dollar amount of the commission?

Answer 3

$19,375 pg78

Question 4

if the annual net income from a commercial property $22,000 and the capitalization rate is 8%, what is the value of the property using the income approach?

Answer 4

$275,000 pg365-366

Question 5

If a borrower must pay $6,000 for points on a $150,000 loan, how many points is the lender charging for this loan?

Answer 5

4 pg284

Question 6

How many acres are there in the north 1/2 of the south west 1/4 and the north east 1/4 of the south east 1/4 section?

Answer 6

120 pg159

Question 7

A man agrees to purchase a house for $84,000. He pays $2,000 as earnest money and obtains a new mortgage loan for $67,000. The purchase contract provides for a march 15 settlement. He and the sellers prorate the present year’s real estate taxes of $1,880.96, which have been prepaid. The man has additional closing costs of $1,250, and the sellers have other closing costs of $850. Using the actual number of days method, how much cash must the man bring to the settlement?

Answer 7

$19,649 (Page 456)

Question 8

The sale price of the property is $250,000. What is the Illinois state transfer tax on this transaction?

Answer 8

$250 (Page 226 - 227)

Question 9

Real property was conveyed for $185,000. What amount will have to be paid in county transfer tax?

Answer 9

$92.50 (Page 226 - 227)

Question 10

A woman’s property in Peoria has an assessed value of $175,000. The local tax rate is 3%, and no equalization factor is used. If the tax was levied in april 2011, the woman had to pay how much?

Answer 10

$2,625 on June 1, 2012 (page 176)

Question 11

A parcel of vacant land 80 feet wide and 200 feet deep was sold for $200 feet per front foot. How much money would a broker receive for her 60% share in the 10% commission?

Answer 11

$960 (Page 78)

Question 12

A seller sold a 2-acre parcel for $1.50 per square foot. What was the total sales price?

Answer 12

$130,680 (Page 160)

Question 13

A condo was purchased for $1250,000. It appraised for $120,500 and previously sold for $118,250. Based on these facts, if the purchaser applies for 80% mortgage, what amount of the loan will the purchaser receive?

Answer 13

$96,400 (Page 306)

Question 14

Which of these federal laws requires that finance charges be stated as an annual percentage rate?

Answer 14

Truth in Lending act (Page 313)

Question 15

A conventional loan was closed on July 1 for $57,200 at 13.5% interest amortized over 25 years at $666.75 per month.. On september 1, what would the principal mount be after the monthly payment was made?

Answer 15

$57,176.75 (Page 303)

Question 16

if a house was sold for $140,000 and the buyer obtained an FHA-insured mortgage loan for $133,700 how much money would the buyer pay in discount point if the lender charged two points?

Answer 16

$2,647 pg284

Question 17

A farmer owns the W1/4 of the NW1/4 of the NW1/4 of Section 22. The remainder of the large NW1/4 can be purchased for $300 per acre. Owning the remainder of the NW1/4 of Section 22 would cost the farmer

Answer 17

$42,000 (Page 161)

Question 18

A real estate transaction had a closing date of november 15. The seller, who was responsible for costs up and including the date of settlement, paid the property taxes of $1,116 for the calendar year. On the closing statement, the buyer would be debited/credited how much?

Answer 18

debited $139.50 (Page 454)

Question 19

A man buys a house for $234,500. He makes a $25,000 cash down payment and takes out a $209,500 mortgage for 30 years. The lot value is $80,000. If the man wants to depreciate the property over a period of 27 1/2 years, how much will the annual depreciate amount be, using the straight-line method?

Answer 19

$5,618.18 (Page 364)

Question 20

A property manager leased a store for three years. The first year, the store’s rent was $1,000 a month, and the rent was to increase 10% per year thereafter. The manager received a 7% commission for the first year, 5% for the second year, and 3% for the balance o the lease. The total commission earned by the property manager was

Answer 20

$1,936 (Page 343)

Question 21

A woman’s estate was distributed according to her will as follows: 54% to her husband, 18% to her children, 16% to her grandchildren, and the remainder to her college. The college received $79,000. How much did the woman’s children receive?

Answer 21

$118,500

Question 22

If a woman takes out a $90,000 loan at 7 1/2% interest to be repaid at the end of 15 years with interest only paid annually, what is the total interest that the woman will pay over the life of the loan?

Answer 22

$101,250 (Page 303)

Question 23

To net the owner $90,000 after 6% commission is paid, the selling price would have to be what?

Answer 23

$95,745 (Page 94)

Question 24

On a residential lot 70 feet square, the side yard building setbacks are 10 feet, the front yard setback is 25 feet, and the rear yard setback is 20 feet. The maximum possible size for a single story structure is how many square feet?

Answer 24

1,250 (Page 465)

Question 25

A property has a new income of $30,000. An appraiser decides to use a 12% capitalization rate rather than 10% rate on this property. What is the result of using the higher capitalization rate?

Answer 25

$50,000 increase in the appraised value (Page 366)

Question 26

A $100,000 loan at 12% could be amortized with monthly payments of $1,200.22 on a 15 year basis or payments of $1,028.63 on a 30 year basis. The 30 year loan results in total payments of what percentage of the 15 year loan’s total payments?

Answer 26

171%

Question 27

A transaction is closing on May 2 in a non-leap year. What is the proration of an annual charge of $560, using the statutory variation method?

Answer 27

$189.68 (Page 457)

Question 28

A woman pays $1,250 per month for her apartment. If she refers three new tenants to the building’s owner during the year, how much is she entitled to receive under the Real Estate License Act of 2000 if the landlord’s normal referal fee is $500 per new tenant?

Answer 28

$1,250 (Page 252)

Question 29

If an annual charge of $560 is prorated in October using the statutory variation method, what will be the resulting daily charge?

Answer 29

$1.51 (Page 457)