AYPO Real Estate Principles
AYPO Real Estate Principles Of Real Estate Exam II
Questions & Answers Recent Edition
1. If the base side of a triangular plot measures 45' and the height line measures 12', what is the area
of the plot in square feet?([b x h] x ½ = A) - ANSWER ✔ - 270 square feet
2. An applicant is allowed to use what electronic devices during the real estate exam? - ANSWER ✔ -
Hand-held calculator
3. Convert the following fraction to a decimal for ease of computation: 31/25 - ANSWER ✔ - 1.24
4. What is the general formula to determine Capital Gain? - ANSWER ✔ - Profit from Sale - Base Value =
Capital Gain
5. A property owner borrows $490,000 at a 12% interest rate. How much interest accumulates in the
first year?(Interest Rate = Interest / Principle) - ANSWER ✔ - $58,800
6. A property owner has a 20-year mortgage that is worth $97,500 with a 7.5% annual interest rate.
What does the property owner pay in mortgage payments every month? - ANSWER ✔ - $784.87
7. What is the basic formula for determining the proration of fees? - ANSWER ✔ - Tax or Fee Rate x
Remaining Days or Months = Tax or Fee Owed
8. A house has 3 distinct rectangular shapes:
A=20'x30'
B=10'x10'
C=75'x50'
1
AYPO Real Estate Principles
, AYPO Real Estate Principles
What is the square footage total? - ANSWER ✔ - 4450 ft2
9. How many hours must an applicant provide that are acceptable and verifiable appraisal experience
acquired over a minimum of 12 months? - ANSWER ✔ - 1,500 hours
10. What is functional obsolescence? - ANSWER ✔ - The loss of property value due to qualities of the
property that cannot be easily changed
11. What is the most probable price which a property should bring in a competitive and open market
under all conditions requisite to a fair sale, the buyer and seller each acting prudently and
knowledgeably? - ANSWER ✔ - Market value
12. Which of the following objective value means the value of a piece of property will rise or fall because
of a future benefit or a future complication? - ANSWER ✔ - Anticipation
13. Replacement cost, or the dollar amount it would cost to construct at current prices a structure that is
not exactly the same is in which type of appraisal? - ANSWER ✔ - Cost approach.
14. A CMA is what? - ANSWER ✔ - Comparative Market Analysis
15. What are fees paid to the lender to compensate the loan company or bank for evaluating,
processing, and approving a mortgage? - ANSWER ✔ - Origination points.
16. A privately run, for-profit financial institution that provides a number of services including mortgage
lending is a... - ANSWER ✔ - Bank.
- ANSWER ✔ -
2
AYPO Real Estate Principles
AYPO Real Estate Principles Of Real Estate Exam II
Questions & Answers Recent Edition
1. If the base side of a triangular plot measures 45' and the height line measures 12', what is the area
of the plot in square feet?([b x h] x ½ = A) - ANSWER ✔ - 270 square feet
2. An applicant is allowed to use what electronic devices during the real estate exam? - ANSWER ✔ -
Hand-held calculator
3. Convert the following fraction to a decimal for ease of computation: 31/25 - ANSWER ✔ - 1.24
4. What is the general formula to determine Capital Gain? - ANSWER ✔ - Profit from Sale - Base Value =
Capital Gain
5. A property owner borrows $490,000 at a 12% interest rate. How much interest accumulates in the
first year?(Interest Rate = Interest / Principle) - ANSWER ✔ - $58,800
6. A property owner has a 20-year mortgage that is worth $97,500 with a 7.5% annual interest rate.
What does the property owner pay in mortgage payments every month? - ANSWER ✔ - $784.87
7. What is the basic formula for determining the proration of fees? - ANSWER ✔ - Tax or Fee Rate x
Remaining Days or Months = Tax or Fee Owed
8. A house has 3 distinct rectangular shapes:
A=20'x30'
B=10'x10'
C=75'x50'
1
AYPO Real Estate Principles
, AYPO Real Estate Principles
What is the square footage total? - ANSWER ✔ - 4450 ft2
9. How many hours must an applicant provide that are acceptable and verifiable appraisal experience
acquired over a minimum of 12 months? - ANSWER ✔ - 1,500 hours
10. What is functional obsolescence? - ANSWER ✔ - The loss of property value due to qualities of the
property that cannot be easily changed
11. What is the most probable price which a property should bring in a competitive and open market
under all conditions requisite to a fair sale, the buyer and seller each acting prudently and
knowledgeably? - ANSWER ✔ - Market value
12. Which of the following objective value means the value of a piece of property will rise or fall because
of a future benefit or a future complication? - ANSWER ✔ - Anticipation
13. Replacement cost, or the dollar amount it would cost to construct at current prices a structure that is
not exactly the same is in which type of appraisal? - ANSWER ✔ - Cost approach.
14. A CMA is what? - ANSWER ✔ - Comparative Market Analysis
15. What are fees paid to the lender to compensate the loan company or bank for evaluating,
processing, and approving a mortgage? - ANSWER ✔ - Origination points.
16. A privately run, for-profit financial institution that provides a number of services including mortgage
lending is a... - ANSWER ✔ - Bank.
- ANSWER ✔ -
2
AYPO Real Estate Principles
