Amortization - ANSWER The repayment of a financial obligation over a specific period of time in a
series of periodic installments.
Appreciation - ANSWER The increase in value of an object over time.
Area - ANSWER The two-dimensional surface space of an object.
Decimals - ANSWER A way of expressing fractions that is compatible with the use of calculators and
computers.
Depreciation - ANSWER The decrease in value of an object over time.
Fractions - ANSWER A method of expressing a portion of a whole and can be expressed in portions
(fractions), decimals and percentages.
Linear Measurement - ANSWER A method of measurement used to determine the length of an
object.
Loan Discount - ANSWER A one-time fee that a lender charges a borrower at closing for granting the
loan usually at a certain interest rate.
Loss - ANSWER The result when something is sold for less than what was originally paid for it.
Percentage Leases - ANSWER A lease that typically charges a minimum base rent, plus some
percentage of the income generated from the tenant's business at the property.
Percentages - ANSWER An expression of a fraction that states a portion of the whole where the
whole is equal to 100% and means a portion per hundred.
Profit - ANSWER The result when something is sold for more money than was originally paid for it.
Prorate - ANSWER To divide proportionately.
,Principles of Real Estate II
Final Exam Questions With
Complete Solutions!!
Rate - ANSWER The cost per unit.
3 Factors in a percentage problem - ANSWER 1. Amount paid is the amount invested.
2. Rate (%) is the percentage.
3. Amount made is the amount earned.
Amount ____ is the amount invested - ANSWER Paid
Amount paid is the amount______ - ANSWER invested
Rate (%) is the _____ - ANSWER percentage
____ is the percentage - ANSWER rate
In percentage problems, one of three factors is missing. There are three rules for finding the missing
factor: - ANSWER 1. To find the amount paid—divide made by the rate.
2. To find the amount made—multiply paid by rate.
3. To find the rate—divide made by paid.
Tofindtheamountpaid - ANSWER divide made by the rate.
,To find the amount made - ANSWER multiply paid by rate.
To find the rate - ANSWER divide made by paid.
part, return, profit, commission, net income, or interest - ANSWER made
total, investment, cost, price, value, or principal - ANSWER paid
rate of return, profit, commission, capitalization, or interest - ANSWER rate
IRV or Income = Rate x Value - ANSWER This is the universal formula in real estate for determining
the values of properties and promissory notes.
Cubic Measurement - ANSWER When a shape encloses a space, the shape has volume. Cubic
measurement is normally used to calculate the volume of a building, such as a warehouse. The
volume is measured in feet, inches or yards as a cube. It is a three- dimensional measurement.
Height x Width x Length = Volume.
Front Foot Measurement - ANSWER Used when you are dealing with the frontage of a lot. The
frontage is normally the street frontage, but it could be a water frontage if the lot is on a lake or
stream or ocean edge. When a lot measurement is given, such as 75' x 150', the first figure (75')
refers to the front feet. A front foot measurement can be by the foot or yard or other measurement,
as long as it is the linear measurement of the distance involved.
linear Measurement - ANSWER A running foot, the same as a progressive distance such as putting
one foot in front of another. It is a one-dimensional measurement. Example: The distance around the
perimeter of the property can be measured in linear feet.
Square Measurement - ANSWER An area such as length multiplied by width. This measurement is
normally used to calculate floor space of a building or the area of a lot. It is a two- dimensional
measurement.
12 Inches=_____ linear ft. - ANSWER 1 linear foot
, 12" x 12" x 12"= ____ cubic ft. - ANSWER 1 Cubic Foot
3 feet= ____ lineal yd. - ANSWER 1 lineal yard
3 feet x 3 feet x 3 feet = _____ cubic yd. - ANSWER 1 Cubic Yard
1 Miles= _____lineal ft. - ANSWER 5,280 lineal feet
1 Rod=_______lineal ft. - ANSWER 16 1/2 lineal feet
1 Mile=______rods - ANSWER 320 rods
1 Mill= ____ of ____ cent - ANSWER 0.10 of 1 cent
1 hectare= _____ acres - ANSWER 2.471 acres
1 Square Ft.= ____ square inches. - ANSWER 144 square inches
1 square yard=____ square feet. - ANSWER 9 square feet
1 township=____ sections - ANSWER 36 sections
1 section=____ square miles - ANSWER 1 square mile
1 square miles=_____acres - ANSWER 640 acres
1 acre=_____ square feet - ANSWER 43,560 square feet
1 acre=___ square chains - ANSWER 10 square chains
_____ Degrees= _____ circle - ANSWER 360 degrees= full circle
series of periodic installments.
Appreciation - ANSWER The increase in value of an object over time.
Area - ANSWER The two-dimensional surface space of an object.
Decimals - ANSWER A way of expressing fractions that is compatible with the use of calculators and
computers.
Depreciation - ANSWER The decrease in value of an object over time.
Fractions - ANSWER A method of expressing a portion of a whole and can be expressed in portions
(fractions), decimals and percentages.
Linear Measurement - ANSWER A method of measurement used to determine the length of an
object.
Loan Discount - ANSWER A one-time fee that a lender charges a borrower at closing for granting the
loan usually at a certain interest rate.
Loss - ANSWER The result when something is sold for less than what was originally paid for it.
Percentage Leases - ANSWER A lease that typically charges a minimum base rent, plus some
percentage of the income generated from the tenant's business at the property.
Percentages - ANSWER An expression of a fraction that states a portion of the whole where the
whole is equal to 100% and means a portion per hundred.
Profit - ANSWER The result when something is sold for more money than was originally paid for it.
Prorate - ANSWER To divide proportionately.
,Principles of Real Estate II
Final Exam Questions With
Complete Solutions!!
Rate - ANSWER The cost per unit.
3 Factors in a percentage problem - ANSWER 1. Amount paid is the amount invested.
2. Rate (%) is the percentage.
3. Amount made is the amount earned.
Amount ____ is the amount invested - ANSWER Paid
Amount paid is the amount______ - ANSWER invested
Rate (%) is the _____ - ANSWER percentage
____ is the percentage - ANSWER rate
In percentage problems, one of three factors is missing. There are three rules for finding the missing
factor: - ANSWER 1. To find the amount paid—divide made by the rate.
2. To find the amount made—multiply paid by rate.
3. To find the rate—divide made by paid.
Tofindtheamountpaid - ANSWER divide made by the rate.
,To find the amount made - ANSWER multiply paid by rate.
To find the rate - ANSWER divide made by paid.
part, return, profit, commission, net income, or interest - ANSWER made
total, investment, cost, price, value, or principal - ANSWER paid
rate of return, profit, commission, capitalization, or interest - ANSWER rate
IRV or Income = Rate x Value - ANSWER This is the universal formula in real estate for determining
the values of properties and promissory notes.
Cubic Measurement - ANSWER When a shape encloses a space, the shape has volume. Cubic
measurement is normally used to calculate the volume of a building, such as a warehouse. The
volume is measured in feet, inches or yards as a cube. It is a three- dimensional measurement.
Height x Width x Length = Volume.
Front Foot Measurement - ANSWER Used when you are dealing with the frontage of a lot. The
frontage is normally the street frontage, but it could be a water frontage if the lot is on a lake or
stream or ocean edge. When a lot measurement is given, such as 75' x 150', the first figure (75')
refers to the front feet. A front foot measurement can be by the foot or yard or other measurement,
as long as it is the linear measurement of the distance involved.
linear Measurement - ANSWER A running foot, the same as a progressive distance such as putting
one foot in front of another. It is a one-dimensional measurement. Example: The distance around the
perimeter of the property can be measured in linear feet.
Square Measurement - ANSWER An area such as length multiplied by width. This measurement is
normally used to calculate floor space of a building or the area of a lot. It is a two- dimensional
measurement.
12 Inches=_____ linear ft. - ANSWER 1 linear foot
, 12" x 12" x 12"= ____ cubic ft. - ANSWER 1 Cubic Foot
3 feet= ____ lineal yd. - ANSWER 1 lineal yard
3 feet x 3 feet x 3 feet = _____ cubic yd. - ANSWER 1 Cubic Yard
1 Miles= _____lineal ft. - ANSWER 5,280 lineal feet
1 Rod=_______lineal ft. - ANSWER 16 1/2 lineal feet
1 Mile=______rods - ANSWER 320 rods
1 Mill= ____ of ____ cent - ANSWER 0.10 of 1 cent
1 hectare= _____ acres - ANSWER 2.471 acres
1 Square Ft.= ____ square inches. - ANSWER 144 square inches
1 square yard=____ square feet. - ANSWER 9 square feet
1 township=____ sections - ANSWER 36 sections
1 section=____ square miles - ANSWER 1 square mile
1 square miles=_____acres - ANSWER 640 acres
1 acre=_____ square feet - ANSWER 43,560 square feet
1 acre=___ square chains - ANSWER 10 square chains
_____ Degrees= _____ circle - ANSWER 360 degrees= full circle
