NYC REAL ESTATE EXAM 2024 LATEST| Q&As WITH EXPLANATIONS
A small apartment property is estimated to have potential gross income of $ 25,000. Vacancy and collection losses are expected to average 5 percent over the life of the property. Operating expenses are expected to average about 30 percent of effective gross income. An overall capitalization rate of 12 percent is derived from market transactions of similar properties. What is the market value? A. $208,333 B. $138,542 C. $197,917 D. $145,833 Correct Answer: B What is the principal on a loan that has an interest rate of 5.57% and a monthly interest payment of $763.98? A. 176987.32 B. 164591.74 C. 154982.53 D. 142583.62 Correct Answer: B $763.98 ÷ (0557 × 1/12) = $164,591.74 Lori owns the vacant lot next door to her home. It is valued at $45,000, and her home is valued at $135,000. If both are assessed at 85% of value and are taxed at a rate of 6.3 per thousand for schools, 4.2 per thousand for the county, and 2.2 per thousand for the borough, what is her yearly tax bill? A. 9693.9 B. 1943.1 C. 642.6 D. 336.6 Correct Answer: B $135,000 + $45,000 = $180,000 **** $180,000 × 0.85 = $153,00 **** 0.0063 + 0.0042 + 0.0022 = 0.0127 **** $153,000 × 0.0127 = $1,943.10 The Petersons bought their home 10 years ago for $175,000, paying 10 percent down and taking a mortgage for $157,500. Today, the outstanding principal is $98,900. What is the total equity that the Petersons have in their home? A. 17500 B. 58600 C. 76100 D. 116400 Correct Answer: C Choice (17500) is incorrect because it is only the down payment. Choice (58600) is incorrect because it represents only the amount that the mortgage has been reduced.
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