License Law and Math Final Exam [100% PASS] /verified/

License Law and Math Final Exam [100% PASS] /verified/ John Grant, known to all as a man of integrity and honesty is 19 years old. Seven months ago, John finished and passed his salesperson examination. Why can John NOT receive a license? *Ans* John did not apply for license within six months after finishing the salesperson's class. A salesperson working as an independent contractor for a broker may: *Ans* List and sell 10 houses a year A property is being appraised by the cost approach. The appraiser estimates that the land is worth $33,000 and the replacement cost of the home is $110,000. A new $20,000 garage was recently added. Total depreciation from all causes is $7,000. What is the indicated value of the property? *Ans* $156,000------->Value = land value + (improvements + capital additions - depreciation), so $33,000 land value + ($110,000 home replacement cost + $20,000 garage addition - $7,000 depreciation) = $156,000. A Missouri broker *Ans* Shall retain for a period of at least three (3) years true copies of all business books If a sworn complaint is filed with the MREC alleging misconduct on the part of a licensee, the Commission *Ans* Shall investigate the actions of the licensee against whom the complaint is made A property has sold for $185,000. The listing agreement calls for a commission of 6.5%. The listing broker and selling broker agree to share the commission equally. What will the listing agent receive if the agent is scheduled to get a 65% share from his broker? *Ans* $3,908 Anne obtains a new loan @ 80% of her home's price of $740,000. The loan constant is 5.645. What is Anne's monthly payment? *Ans* $3,342------------------->Monthly payment = (loan amount / 1000) x loan constant. Loan amount = $740,000 x 80%, or $592,000. 592,000 / 1000 = 592 x 5.645 constant = $3,341.84, or $3,342. A property is purchased for $480,000. The land is valued at 10% of the initial purchase price of the property. Given a 39-year depreciation term, what is the annual depreciation expense? *Ans* $11,077 Annual depreciation = beginning depreciable basis (initial property value + capital improvements - land value) / depreciation term. So, ($480,000 - $48,