GENERAL APPRAISER INCOME APPROACH
PRACTICE EXAM WITH ACTUAL CORRECT
QUESTIONS AND VERIFIED DETAILED
ANSWERS| CURRENTLY TESTING VERSION |
ALREADY GRADED A+|NEWEST|EXPERT
VERIFIED FOR GUARANTEED PASS 2026/2027
Calculate the "monthly" mortgage payment for a $90,000 loan at 7% interest, amortized
over a 20-year period.
$495.36
$697.77
$4,495.36
$8,697.77
$697.77
f [FIN] 20 g [n] 7 g [i] 90,000 [CHS] [PV] [PMT]
A condominium project is establishing reserves for the following: pool resurfacing that
is estimated to be $8,000 in 10 years; resurfacing parking lot that is estimated to be
$4,000 in 5 years, and exterior painting that is estimated to be $50,000 in 7 years. At 9%,
what would be the total annual deposit necessary to accomplish these goals?
$6,082.06
$6,685.55
$6,743.68
$6,826.92
$6,082.06
g [BEG] f [FIN] 10 [n] 9 [1] 8,000 [CHS] [FV] [PMT] [STO] 1 5 [n] 4,000 [CHS] [FV] [PMT]
[RCL] 1 [+] [STO] 1 7 [n] 50,000 [CHS] [FV] [PMT] [RCL] 1 [+]
,STANDARD 4 states that reviewers check for all of the following EXCEPT:
Conformity
Completeness
Adequacy
Relevance
Conformity
Factors like consumptive use and amounts that can be diverted relate to the appraisal
of ____________.
Mineral rights
Timberland
Water rights
Grazing rights
Water rights
Available equity is $20,000, and the NOI is $10,000. An equity capitalization rate would
be 0.10, and the mortgage capitalization rate is 0.08. What is the value of the mortgage?
$70,000
$80,000
$90,000
$100,000
$100,000
20,000 ENTER .10 [X] [STO] 1 10,000 ENTER [RCL] 1 [-] .08 [÷]
An appraiser's most critical concern in developing projected incomes is:
Leverage
Accuracy
Amenities
Vacancy rate
Accuracy
A rate of return on capital usually expressed as a compound annual percentage rate is
the _____________.
,Discount rate
Yield rate
Capitalization rate
Annuity rate
Yield rate
The income classification after deduction of Vacancy and Collection Allowances is
referred to as the __________.
Potential Gross Income
Effective Gross Income
Net Operating Income
Pre-Tax Cash Flow
Effective Gross Income
Consideration for quality, quantity, transportation costs, and restoration cost apply to
the valuation of:
Mineral rights
Easements
Air rights
Grazing rights
Mineral rights
The cost of foregone opportunities is:
Entrepreneurial loss
Entrepreneurial risk
Opportunity cost
Opportunities foregone
Opportunity cost
Another term appraisers use for a step-up lease is:
Percentage lease
Multi-story building lease
, Changing index lease
Graduated payment lease
Graduated payment lease
A general term representing a compound interest rate used to convert expected future
cash flow into a present value estimate is:
Discount rate
Sinking fund
Annuity capitalization
Overall internal rate
Discount rate
The concept that the value of a particular component is measured as the amount that
its absence would detract from the value of the whole is _________.
Contribution
Substitution
Conformity
Law of Increasing Returns
Contribution
An effective tool for bringing older numbers and data to current timeframes is the use of
__________.
Ratios
Dollars
The Rule of 72
Discounting
Ratios
To calculate using the Rule of 72, first, key in [72] [ENTER] then________ [ ÷ ].
72
The principal amount
The number of years
The interest rate
PRACTICE EXAM WITH ACTUAL CORRECT
QUESTIONS AND VERIFIED DETAILED
ANSWERS| CURRENTLY TESTING VERSION |
ALREADY GRADED A+|NEWEST|EXPERT
VERIFIED FOR GUARANTEED PASS 2026/2027
Calculate the "monthly" mortgage payment for a $90,000 loan at 7% interest, amortized
over a 20-year period.
$495.36
$697.77
$4,495.36
$8,697.77
$697.77
f [FIN] 20 g [n] 7 g [i] 90,000 [CHS] [PV] [PMT]
A condominium project is establishing reserves for the following: pool resurfacing that
is estimated to be $8,000 in 10 years; resurfacing parking lot that is estimated to be
$4,000 in 5 years, and exterior painting that is estimated to be $50,000 in 7 years. At 9%,
what would be the total annual deposit necessary to accomplish these goals?
$6,082.06
$6,685.55
$6,743.68
$6,826.92
$6,082.06
g [BEG] f [FIN] 10 [n] 9 [1] 8,000 [CHS] [FV] [PMT] [STO] 1 5 [n] 4,000 [CHS] [FV] [PMT]
[RCL] 1 [+] [STO] 1 7 [n] 50,000 [CHS] [FV] [PMT] [RCL] 1 [+]
,STANDARD 4 states that reviewers check for all of the following EXCEPT:
Conformity
Completeness
Adequacy
Relevance
Conformity
Factors like consumptive use and amounts that can be diverted relate to the appraisal
of ____________.
Mineral rights
Timberland
Water rights
Grazing rights
Water rights
Available equity is $20,000, and the NOI is $10,000. An equity capitalization rate would
be 0.10, and the mortgage capitalization rate is 0.08. What is the value of the mortgage?
$70,000
$80,000
$90,000
$100,000
$100,000
20,000 ENTER .10 [X] [STO] 1 10,000 ENTER [RCL] 1 [-] .08 [÷]
An appraiser's most critical concern in developing projected incomes is:
Leverage
Accuracy
Amenities
Vacancy rate
Accuracy
A rate of return on capital usually expressed as a compound annual percentage rate is
the _____________.
,Discount rate
Yield rate
Capitalization rate
Annuity rate
Yield rate
The income classification after deduction of Vacancy and Collection Allowances is
referred to as the __________.
Potential Gross Income
Effective Gross Income
Net Operating Income
Pre-Tax Cash Flow
Effective Gross Income
Consideration for quality, quantity, transportation costs, and restoration cost apply to
the valuation of:
Mineral rights
Easements
Air rights
Grazing rights
Mineral rights
The cost of foregone opportunities is:
Entrepreneurial loss
Entrepreneurial risk
Opportunity cost
Opportunities foregone
Opportunity cost
Another term appraisers use for a step-up lease is:
Percentage lease
Multi-story building lease
, Changing index lease
Graduated payment lease
Graduated payment lease
A general term representing a compound interest rate used to convert expected future
cash flow into a present value estimate is:
Discount rate
Sinking fund
Annuity capitalization
Overall internal rate
Discount rate
The concept that the value of a particular component is measured as the amount that
its absence would detract from the value of the whole is _________.
Contribution
Substitution
Conformity
Law of Increasing Returns
Contribution
An effective tool for bringing older numbers and data to current timeframes is the use of
__________.
Ratios
Dollars
The Rule of 72
Discounting
Ratios
To calculate using the Rule of 72, first, key in [72] [ENTER] then________ [ ÷ ].
72
The principal amount
The number of years
The interest rate
