Real Estate Math Exam – Practice Questions and Answers (Solved Papers) The fastest way to calculate one month's interest on a real estate loan with an interest rate of 7.2% interest per annum is to multiply the principal balance by - Correct Answers
✅0.006 (7.2%/12)
A duplex with a fair market value of $20,000 and an outstanding loan balance of $12,000 was exchanged for a four-plex with a market value of $35,000 and an outstanding $18,000 loan balance. The owner of the duplex would pay in cash or secondary financing - Correct Answers ✅$9,100 (Market Value - Loan = Equity) - Duplex: 20k-12k=8k 4plex:
35k-18k=17k diff: 17k-8k=9k
Mr. Brown, licensed broker, took an offer from Mr. Green on
land for $6,000 with the following terms: $2,000 down and
purchase money trust deed and note for the balance, payable $70 per month including interest at 7.2%. If the offer was accepted by the seller, what is the balance of the loan after the first 3 months payment? - Correct Answers ✅$3,861 After subtracting $140 escrow fees and 6% commission on gross sales price, a seller receives $13,584. What is the selling price? - Correct Answers ✅$14,600 (100%x = 13584 + 140 + 6%x; 94%x = 13854+140; 13724/.96 =
14600)
Keith Johnson purchased a property at 20% less than the listed price and later sold the property for the original listed 1 / 3
Real Estate Math Exam – Practice Questions and Answers (Solved Papers) price. What was a percentage of profit? - Correct Answers
✅25%
Lots "A", "B" and "C" sold for a total price of $39,000. If lot "B" was priced at $6,400 more than lot "A", and lot "C" was priced at $7,100 more than lot "B", the price of lot "A" was: - Correct Answers ✅$6,366.67 Assume a real estate salesman sold a residence for $31,000.If the broker's commission was 6% and the salesman was the receive 45% of the total commission for selling the property,
the salesman would receive: - Correct Answers ✅None of
the above (Commission is exactly $837) Smith and Allen wish to exchange real property. Smith owns a property valued at $150,000 against which there is a $35,000 trust deed. Allen owns property worth $105,000 on which there is an existing first trust deed of $25,000 and a second trust deed of $20,000. Allen has $15,000 in cash which he is willing to pay towards the exchange. If Smith is willing to accept a second trust deed and note from Allen in order to
effect the exchange, the amount of the note would be: -
Correct Answers ✅$40,000 (Market Value - Loan = Equity) An apartment house property costs $240,000 and this price has been verified to be an accurate estimate of the property value. In comparable circumstances it is also verified that the owner may use a 10% capitalization rate to the purchase 2 / 3
Real Estate Math Exam – Practice Questions and Answers (Solved Papers) price in determining his net income. Should there be a 10% increase in rental income with no increase in the owner's expenses and should the capitalization rate of the property be increased to 12%, what would be the estimated value of the property? - Correct Answers ✅$220,000 (Value x Cap Rate = Income) Able purchased a $15,000 home. His down payment amounted to 6 2/3% of the purchase price; the balance was carried as a first trust deed bearing interest at 8.4% per annum. The principal is to be repaid at $50.00 per month. A three-year insurance policy costs $72; the property taxes are $360 per year. Able is required to make a proportionate monthly payment to a loan trust fund for these items. The total amount of the first monthly payment most nearly would
be: - Correct Answers ✅$182
A husband and wife own a vacation home in the mountains.The annual taxes on the property are $400. Since the total taxes cannot exceed 1% of the full cash value of the
property, the "full cash value" of the property would be: -
Correct Answers ✅$40,000 (400/1%) A house sold for $16350, which amount was 9% more than
the cost of the house. The cost of the house was: - Correct
Answers ✅$15,000 (16350/109%)
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