Quiz One
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How many acres are there in the property described as follows: the NW 1/
4
of the SW 1/
4
of the NE 1/
4
of Section 1?
a. 64 acres
b. 10 acres
c. 20 acres
d. 12 acres
Answer
b (4 x 4 x 4) = 64; 640 divided by 64 = 10
A buyer offers
$26, 280
for a
20 percent interest
in a commercial property. What is the
total value
of the property?
a. $31,536
b. $32,850
c. $105,120
d. $131,400
Answer
d Part/Percentage Rate = Total $26,280/.20 = $131,400
A parcel of vacant land has an assessed valuation of
$274,550
. If the assessment is
85%
of market value, what is the market value?
a. $315,732.50
b. $320,000.00
c. $323,000.00
d. $1,830,333.33
Answer
c $274,550/.85 = Value Part/Rate=Total
If a residence is valued at
$87,500
and its assessment ratio is
50% of market value
, what are the annual taxes if the tax rate is
$7.80 per $100 of assessed valuation
?
a. $3,187.75
b. $3,412.50
c. $5,609.96
d. $6,825.00
Answer
b $87,500 x 50% = $43,750 x .078 = $3412.50
A $75,000 mortgage loan requires a discount of $1,875 to be paid by the seller. How many points is this equivalent to?
a. 2
b. 2.5
c. 4.5
d. 5
Answer
b $1,875/$75,000 = .0250 = 2.5% Part/Total=Rate
A vacant lot that measures 100 feet wide by 125 feet deep is listed at a price of $250 per front foot. The broker will collect an 8% commission on the sale. If the lot sells for the full asking price, how much is the broker's fee?
a. $2,500
b. $2,000
c. $1,500
d. $1,250
Answer
b $250 x 100' frontage = $25,000 x 8% = $2,000
If a mortgage lender intends to yield 10 3/8% on a 30 year loan and charges 9 3/4% interest, how many lender points should the mortgage lender charge for his portfolio investment?
a. 8 points
b. 5 points
c. 1/2 point
d. 4 points
Answer
b 10 3/8 = 83/8 ; 9 3/4 = 9 6/8 = 78/8 ; 83/8 - 78/8 = 5/8 or 5 lender points
If the borrower paid
$189.06
interest last
month
on a $27,500 loan, what is the interest rate?
a. 7.5%
b. 7.75%
c. 8.25%
d. 8.5%
Answer
c $189.06 x 12 months = $2,268.72 / $27,500 = .0825 = 8.25% P/T=R
If the annual
net income
from certain commercial property
is $22,000
and the CAP
Rate is 8%
, what is the value of the property using the income approach?
a. $275,000
b. $176,000
c. $200,000
d. $183,000
Answer
a I/R=V $22,000/.08 = $275,000 Value
The taxes for 1994 are $1743.25 and have not been paid. If the sale is to be closed on August 12, 1994, what is the tax proration that will be charged to the seller based on a 360-day year?
a. $1104.05
b. $1220.26
c. $668.26
d. $1074.99
Answer
d Jan-Aug=7months + 12 days ; 7x30 =210+12 days = 222 $1,743.25 / 360 = $4.8424 x 222
Copyright 1999 by
Susan Jahns, Instructor
(
suejahns@yahoo.com
)