AYPO REAL ESTATE PRINCIPLES OF REAL
ESTATE I STUDY GUIDE COMPLETE
QUESTIONS AND VERIFIED ANSWERS
●● An applicant is allowed to use what electronic devices during the real
estate exam?
Answer: Hand-held calculator
●● Convert the following fraction to a decimal for ease of computation:
31/25
Answer: 1.24
●● What is the general formula to determine Capital Gain?
Answer: Profit from Sale - Base Value = Capital Gain
●● 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
●● 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
●● 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
●● A house has 3 distinct rectangular shapes:
A=20'x30'
B=10'x10'
C=75'x50'
What is the square footage total?
Answer: 4450 ft2
●● 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
●● What is functional obsolescence?
Answer: The loss of property value due to qualities of the property that
cannot be easily changed
, ●● 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
●● 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
●● 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.
●● A CMA is what?
Answer: Comparative Market Analysis
●● What are fees paid to the lender to compensate the loan company or
bank for evaluating, processing, and approving a mortgage?
Answer: Origination points.
●● A privately run, for-profit financial institution that provides a number
of services including mortgage lending is a...
ESTATE I STUDY GUIDE COMPLETE
QUESTIONS AND VERIFIED ANSWERS
●● An applicant is allowed to use what electronic devices during the real
estate exam?
Answer: Hand-held calculator
●● Convert the following fraction to a decimal for ease of computation:
31/25
Answer: 1.24
●● What is the general formula to determine Capital Gain?
Answer: Profit from Sale - Base Value = Capital Gain
●● 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
●● 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
●● 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
●● A house has 3 distinct rectangular shapes:
A=20'x30'
B=10'x10'
C=75'x50'
What is the square footage total?
Answer: 4450 ft2
●● 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
●● What is functional obsolescence?
Answer: The loss of property value due to qualities of the property that
cannot be easily changed
, ●● 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
●● 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
●● 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.
●● A CMA is what?
Answer: Comparative Market Analysis
●● What are fees paid to the lender to compensate the loan company or
bank for evaluating, processing, and approving a mortgage?
Answer: Origination points.
●● A privately run, for-profit financial institution that provides a number
of services including mortgage lending is a...
