Unit 8 Real Estate Math questions with 100% correct answers 2023/2024

Unit 8 Real Estate Math12 inches - correct answer 1 foot 5,280 feet - correct answer 1 mile 36 inches - correct answer 1 yard 16 1/2 feet - correct answer 1 rod 3 feet - correct answer 1 yard 320 rods - correct answer 1 mile 144 square inches - correct answer 1 square foot 1,296 square inches - correct answer 1 square yard 9 square feet - correct answer 1 square yard 43,560 square feet - correct answer 1 acre 640 acres - correct answer 1 section = 1 square mile 1,728 cubic inches - correct answer 1 cubic foot 46,656 cubic inches - correct answer 1 cubic yard 27 cubic feet - correct answer 1 cubic yard A $200,000. loan can be amortized with monthly payments of $1,688 over 15 years or $1,432 on a 20 year basis. The 20 year loan would result in total payments of what percent of the 15 year loans total payments? - correct answer $1,688 X 12 x 15 = $303,840.00 $1,432 X 12 X 20 = $343,680. $343,680 divided by $303,840. + 1.13 or 113% A property has an appraised value of $60,000. A loan is granted on the property for 75% of its appraised value. The loan is spread over 25 years at an interest rate of 1/2% per month. If the amount paid toward the principal is to remain constant throughout the life of the loan, what is the first monthly payment? - correct answer $60,000 x .75 = $45,000, Loan of $45,000. Fraction to decimal = ½% = .005 .005 x 12 = .06 Loan of $45,000 x .06 = $2,700 / 12 = $225;$45,000 / 300 pymts = $150; $225 (I) + $150 (P) = $375 payment A property valued at $250,000 earns $950 per month. What is the annual percentage return? - correct answer 950 X 12 = 11,400: 11,400 / 250,000 = 0.0456 or 4.6% If the interest on a loan at 11 percent per annum for 7 months was $3,500, what was the amount of the loan? - correct answer 7/12 X Total Interest = 3,500: Loan Amount = [(3500 * 12)/ 7] / 11%: 3,500 * 12 = 42,000: 42,000 / 7 = 6,000: 6,000 / .11= 54,545.45 A broker's assistant was paid a base salary of $1,500 per month plus five percent of the broker's gross commissions. If she earned $3,000 last month, how much did the broker earn? - correct answer $3,000 − $1,500 = $1,500; $1,500 / .05 = $30,000 Janet purchased a property several years ago for $250,000 and has decided to sell it. The sales commission and other closing costs will be 10% of the sales price. How much must the home have appreciated in value for Janet to break even? - correct answer 250,000 / .90 = $277,778;$277,778 - $250,000 = $27,778 or Let X = the total sale price needed to net $250,000 .10 * X = 10% of the new sale price which will be charged for closing costs Therefore: X - ( .10 *X ) = 250,000 From here we simply solve. .90 * X = 250,000 X = 250,000 / .90 X = 277,778 So she must sell for $277,778 (realizing a profit of $27,778) in order to break even after closing costs. An investor wants to build a small shopping center and build 72,000 square feet of retail space. If he purchases 3 acres of commercial land, what percentage of the site will the building occupy? - correct answer 72,000 / (3 * 43,560) = 55% A 40-acre commercial building site sold for $3,500 per acre. The lot is 900 feet deep. What is the price per front foot? - correct answer The site sold for 40 * $3,500 = $140,000; The dimensions are 900 x 1,936 (43,560 x 40 = 1,742,400 sq ft. / 900 = 1,936);$140,000 / 1,936 = $72.31 per front foot A property owner needs to replace his driveway. If the driveway is 25 feet long, 19 feet wide, and 6 inches thick, how many cubic yards of concrete will be needed. (You cannot order a partial cubic yard) - correct answer 25 * 19 * .5 [6" = 1/2'] = 237.5 cu ft; there are 27 cu ft in 1 cu yd so 237.5 / 27 = 8.8 rounded up to 9 cu yds In 2004 the rent at a 10-unit apartment building was $650 a month per unit. The management company was paid a fee of 10% of gross rent collected plus a bonus of one- half of one month's rent each time a new tenant signed a one-year lease. One apartment remained vacant for three months and four new leases were signed. How much did the property management company earn last year? - correct answer 9 units x $650 x 12 months ($70,200), 1 unit x $650 x 9 months ($5850)= 76,050 (gross rent). $76,050 x .10 (10%) = $7,605 plus 4 new leases x $325 (half month rent) = $1,300 bonus = $8,905 A broker associate is listing a home with 1,000 square feet of living area on an improved building site. The owner insists that the listing price reflect a value of $85.00 per square foot of living area, $32,000.00 for the building site, and include a 4% sales commission. The broker should list the real property for ____. - correct answer ? x .96 = 117000, $117,000 / .96 = $121,875 Commission as a Ratio: T-Bar Method List price = 100% − 4% Commission = 96% net to seller. Part Total | Rateor;117,000 ? | .96 To solve a percentage problem, you have three possible questions: What is the Total Amount if you know the percentage rate and the part of the total amount? What is the Percentage Rate if you know the Total Amount and the Part of the Total Amount?