UNIT 8: REAL ESTATE MATH
QUESTIONS AND ANSWERS 2024/2025
LATEST UPDATED GRADED A+.
12 inches - Solution 1 foot
5,280 feet - Solution 1 mile
36 inches - Solution 1 yard
16 1/2 feet - Solution 1 rod
3 feet - Solution 1 yard
320 rods - Solution 1 mile
144 square inches - Solution 1 square foot
1,296 square inches - Solution 1 square yard
9 square feet - Solution 1 square yard
43,560 square feet - Solution 1 acre
640 acres - Solution 1 section = 1 square mile
1,728 cubic inches - Solution 1 cubic foot
46,656 cubic inches - Solution 1 cubic yard
27 cubic feet - Solution 1 cubic yard
A $200,000. loan can be amortized with monthly payments of $1,688 over
15 years or $1,432 on a 20 year basis. The 20 year loan would result in
total payments of what percent of the 15 year loans total payments? -
, Solution $1,688 X 12 x 15 = $303,840.00 $1,432 X 12 X 20 = $343,680.
$343,680 divided by $303,840. + 1.13 or 113%
A property has an appraised value of $60,000. A loan is granted on the
property for 75% of its appraised value. The loan is spread over 25 years at
an interest rate of 1/2% per month. If the amount paid toward the principal
is to remain constant throughout the life of the loan, what is the first
monthly payment? - Solution $60,000 x .75 = $45,000, Loan of $45,000.
Fraction to decimal = ½% = .005 .005 x 12 = .06 Loan of $45,000 x .06 =
$2, = $225;$45, pymts = $150; $225 (I) + $150 (P) = $375
payment
A property valued at $250,000 earns $950 per month. What is the annual
percentage return? - Solution 950 X 12 = 11,400: 11,,000 =
0.0456 or 4.6%
If the interest on a loan at 11 percent per annum for 7 months was $3,500,
what was the amount of the loan? - Solution 7/12 X Total Interest = 3,500:
Loan Amount = [(3500 * 12)/ 7] / 11%: 3,500 * 12 = 42,000: 42, =
6,000: 6,000 / .11= 54,545.45
A broker's assistant was paid a base salary of $1,500 per month plus five
percent of the broker's gross commissions. If she earned $3,000 last
month, how much did the broker earn? - Solution $3,000 − $1,500 =
$1,500; $1,500 / .05 = $30,000
Janet purchased a property several years ago for $250,000 and has
decided to sell it. The sales commission and other closing costs will be
10% of the sales price. How much must the home have appreciated in
value for Janet to break even? - Solution 250,000 / .90 =
$277,778;$277,778 - $250,000 = $27,778 or Let X = the total sale price
needed to net $250,000
.10 * X = 10% of the new sale price which will be charged for closing costs
Therefore: X - ( .10 *X ) = 250,000
From here we simply solve.
.90 * X = 250,000
X = 250,000 / .90
X = 277,778 So she must sell for $277,778 (realizing a profit of $27,778) in
order to break even after closing costs.
QUESTIONS AND ANSWERS 2024/2025
LATEST UPDATED GRADED A+.
12 inches - Solution 1 foot
5,280 feet - Solution 1 mile
36 inches - Solution 1 yard
16 1/2 feet - Solution 1 rod
3 feet - Solution 1 yard
320 rods - Solution 1 mile
144 square inches - Solution 1 square foot
1,296 square inches - Solution 1 square yard
9 square feet - Solution 1 square yard
43,560 square feet - Solution 1 acre
640 acres - Solution 1 section = 1 square mile
1,728 cubic inches - Solution 1 cubic foot
46,656 cubic inches - Solution 1 cubic yard
27 cubic feet - Solution 1 cubic yard
A $200,000. loan can be amortized with monthly payments of $1,688 over
15 years or $1,432 on a 20 year basis. The 20 year loan would result in
total payments of what percent of the 15 year loans total payments? -
, Solution $1,688 X 12 x 15 = $303,840.00 $1,432 X 12 X 20 = $343,680.
$343,680 divided by $303,840. + 1.13 or 113%
A property has an appraised value of $60,000. A loan is granted on the
property for 75% of its appraised value. The loan is spread over 25 years at
an interest rate of 1/2% per month. If the amount paid toward the principal
is to remain constant throughout the life of the loan, what is the first
monthly payment? - Solution $60,000 x .75 = $45,000, Loan of $45,000.
Fraction to decimal = ½% = .005 .005 x 12 = .06 Loan of $45,000 x .06 =
$2, = $225;$45, pymts = $150; $225 (I) + $150 (P) = $375
payment
A property valued at $250,000 earns $950 per month. What is the annual
percentage return? - Solution 950 X 12 = 11,400: 11,,000 =
0.0456 or 4.6%
If the interest on a loan at 11 percent per annum for 7 months was $3,500,
what was the amount of the loan? - Solution 7/12 X Total Interest = 3,500:
Loan Amount = [(3500 * 12)/ 7] / 11%: 3,500 * 12 = 42,000: 42, =
6,000: 6,000 / .11= 54,545.45
A broker's assistant was paid a base salary of $1,500 per month plus five
percent of the broker's gross commissions. If she earned $3,000 last
month, how much did the broker earn? - Solution $3,000 − $1,500 =
$1,500; $1,500 / .05 = $30,000
Janet purchased a property several years ago for $250,000 and has
decided to sell it. The sales commission and other closing costs will be
10% of the sales price. How much must the home have appreciated in
value for Janet to break even? - Solution 250,000 / .90 =
$277,778;$277,778 - $250,000 = $27,778 or Let X = the total sale price
needed to net $250,000
.10 * X = 10% of the new sale price which will be charged for closing costs
Therefore: X - ( .10 *X ) = 250,000
From here we simply solve.
.90 * X = 250,000
X = 250,000 / .90
X = 277,778 So she must sell for $277,778 (realizing a profit of $27,778) in
order to break even after closing costs.
