Page 1 of 140
TEXAS PRINCIPLES OF REAL ESTATE II FINAL EXAMS |
QUESTIONS AND VERIFIED ANSWERS | GRADE A |
2025 UPDATES STUDY BUNDLE WITH COMPLETE
SOLUTIONS | 100% GUARANTEED
Mixed Numbers .....ANSWER.....A number containing both a
whole number and a fraction (examples: 1⅓; 9⅞)
Improper Fractions .....ANSWER.....a fraction with its numerator
equal to or greater than its denominator
Commission Calculation .....ANSWER.....Sales price X rate of
commission = total commission
Solving for the Commission Rate .....ANSWER.....Commission Rate
= Commission ÷ Price
Solving for the Property's Price .....ANSWER.....Price =
Commission ÷ Commission Rate
,Page 2 of 140
Profit .....ANSWER.....Profit (or Loss) = Selling price - Original
cost
Profit Percentage .....ANSWER.....Percentage of profit = Profit ÷
Original cost
Profit Margin .....ANSWER.....Profit margin = Profit ÷ Selling
price
Interest .....ANSWER.....the price paid for the use of borrowed
money
3 types of interest calculations .....ANSWER.....Simple interest,
add-on interest, and compound interest
Simple interest .....ANSWER.....Interest = principal x rate x time
Add-on interest .....ANSWER.....loan amount x contracted interest
rate x number of payments
Add-on interest APR .....ANSWER.....APR = 2 x number of
payment periods in one year x total financing charges ÷
,Page 3 of 140
(principal, or amount borrowed x (number of scheduled
payments +1)
Compound interest .....ANSWER.....interest which is computed on
the principal amount plus the accrued interest.
Compound Interest Formula .....ANSWER.....Compound amount =
Initial deposit (1 + Interest rate)n
Points .....ANSWER.....a one-time service charge to the borrower
for making the loan
Two types of points .....ANSWER.....origination fee and discount
points
Loan-to-Value Ratio (LTV) .....ANSWER.....expresses the
relationship between a property's purchase price and its loan
amount.
Loan-to-Value formula .....ANSWER.....LTV ratio = (Loan amount
÷ Value)
, Page 4 of 140
Area of a rectangle .....ANSWER.....Area = length x width
Area of a square .....ANSWER.....Area = side x side
Area of a triangle .....ANSWER.....Area = ½ base x height
Perimeter .....ANSWER.....a lot or other shape is the sum of the
length of all its sides.
Acre .....ANSWER.....A measure of land equal to 43,560 square
feet.
Hectare .....ANSWER.....is equal to 10,000 square meters or
approximately 2.47 acres.
To convert acres to hectares .....ANSWER.....divide the total acres
by 2.47
Appraisal .....ANSWER.....is an unbiased estimate of the nature,
quality, value or utility of an interest in or aspect of identified
real estate and related personalty as of a certain date.
TEXAS PRINCIPLES OF REAL ESTATE II FINAL EXAMS |
QUESTIONS AND VERIFIED ANSWERS | GRADE A |
2025 UPDATES STUDY BUNDLE WITH COMPLETE
SOLUTIONS | 100% GUARANTEED
Mixed Numbers .....ANSWER.....A number containing both a
whole number and a fraction (examples: 1⅓; 9⅞)
Improper Fractions .....ANSWER.....a fraction with its numerator
equal to or greater than its denominator
Commission Calculation .....ANSWER.....Sales price X rate of
commission = total commission
Solving for the Commission Rate .....ANSWER.....Commission Rate
= Commission ÷ Price
Solving for the Property's Price .....ANSWER.....Price =
Commission ÷ Commission Rate
,Page 2 of 140
Profit .....ANSWER.....Profit (or Loss) = Selling price - Original
cost
Profit Percentage .....ANSWER.....Percentage of profit = Profit ÷
Original cost
Profit Margin .....ANSWER.....Profit margin = Profit ÷ Selling
price
Interest .....ANSWER.....the price paid for the use of borrowed
money
3 types of interest calculations .....ANSWER.....Simple interest,
add-on interest, and compound interest
Simple interest .....ANSWER.....Interest = principal x rate x time
Add-on interest .....ANSWER.....loan amount x contracted interest
rate x number of payments
Add-on interest APR .....ANSWER.....APR = 2 x number of
payment periods in one year x total financing charges ÷
,Page 3 of 140
(principal, or amount borrowed x (number of scheduled
payments +1)
Compound interest .....ANSWER.....interest which is computed on
the principal amount plus the accrued interest.
Compound Interest Formula .....ANSWER.....Compound amount =
Initial deposit (1 + Interest rate)n
Points .....ANSWER.....a one-time service charge to the borrower
for making the loan
Two types of points .....ANSWER.....origination fee and discount
points
Loan-to-Value Ratio (LTV) .....ANSWER.....expresses the
relationship between a property's purchase price and its loan
amount.
Loan-to-Value formula .....ANSWER.....LTV ratio = (Loan amount
÷ Value)
, Page 4 of 140
Area of a rectangle .....ANSWER.....Area = length x width
Area of a square .....ANSWER.....Area = side x side
Area of a triangle .....ANSWER.....Area = ½ base x height
Perimeter .....ANSWER.....a lot or other shape is the sum of the
length of all its sides.
Acre .....ANSWER.....A measure of land equal to 43,560 square
feet.
Hectare .....ANSWER.....is equal to 10,000 square meters or
approximately 2.47 acres.
To convert acres to hectares .....ANSWER.....divide the total acres
by 2.47
Appraisal .....ANSWER.....is an unbiased estimate of the nature,
quality, value or utility of an interest in or aspect of identified
real estate and related personalty as of a certain date.
