AYPO Real Estate Principles of Real Estate II Exam Study Guide Questions
with Correct Answers
Question 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
Question 2:
An applicant is allowed to use what electronic devices during the real estate exam?
Answer:
Hand-held calculator
Question 3:
Convert the following fraction to a decimal for ease of computation: 31/25
Answer:
1.24
Question 4:
What is the general formula to determine Capital Gain?
Answer:
Profit from Sale - Base Value = Capital Gain
Question 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
Question 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
Question 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
Question 8:
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
Question 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
Question 10:
What is functional obsolescence?
Answer:
The loss of property value due to qualities of the property that cannot be easily changed
Question 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
, Question 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
Question 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.
Question 14:
A CMA is what?
Answer:
Comparative Market Analysis
Question 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.
Question 16:
A privately run, for-profit financial institution that provides a number of services including
mortgage lending is a...
Answer:
Bank.
Question 17:
In which type of payment plan does the borrower pay a lesser amount for the first years of the
plan, often scheduled at five years, and then a higher monthly amount in the last portion of the
loan?
Answer:
with Correct Answers
Question 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
Question 2:
An applicant is allowed to use what electronic devices during the real estate exam?
Answer:
Hand-held calculator
Question 3:
Convert the following fraction to a decimal for ease of computation: 31/25
Answer:
1.24
Question 4:
What is the general formula to determine Capital Gain?
Answer:
Profit from Sale - Base Value = Capital Gain
Question 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
Question 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
Question 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
Question 8:
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
Question 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
Question 10:
What is functional obsolescence?
Answer:
The loss of property value due to qualities of the property that cannot be easily changed
Question 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
, Question 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
Question 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.
Question 14:
A CMA is what?
Answer:
Comparative Market Analysis
Question 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.
Question 16:
A privately run, for-profit financial institution that provides a number of services including
mortgage lending is a...
Answer:
Bank.
Question 17:
In which type of payment plan does the borrower pay a lesser amount for the first years of the
plan, often scheduled at five years, and then a higher monthly amount in the last portion of the
loan?
Answer:
