Ch 8 Pearson VUE - Real Estate Math Calculations. Multiple Choice Questions And Correct Answers
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Ch 8 Pearson VUE
Ch 8 Pearson VUE - Real Estate Math Calculations. Multiple Choice Questions And Correct Answers
I. An office manager was paid $1,000 per month plus 0.0025% (1/4) of one percent of all office sales. In November, she received $2,780. This amount was based on monthly sales of
A. $556,000.
B. $7...
Ch 8 Pearson VUE - Real Estate Math
Calculations. Multiple Choice Questions And
Correct Answers
I. An office manager was paid $1,000 per month plus 0.0025% (1/4) of one percent
of all office sales. In November, she received $2,780. This amount was based on
monthly sales of
A. $556,000.
B. $712,000.
C. $912,000.
D. $1,112,000.
B
$2,780 - $1,000 (salary) =
$1,780 attributable to sales
$1,.0025% = $712,000 total office sales
2. What investment is necessary for a yield of $500 per month at 6 percent
interest?
A. $8,333.33
B. $60,000
C. $100,000
D. $120,000
C
$500 per month = $6,000 per year
$6,.06% = $100,000 =
$100,000 investment yielding $6,000 per year at 6%
3. A 30-acre rectangular parcel has 660 feet on the street side. What is the depth
of the parcel in feet?
A. 738.42
B. 963.7
C. 1,240
D. 1,980
D
Known dimension = 660 ft.
TOTAL area is 30 acres, or 30 x 43,560 = 1,306,800 sq ft.
To find one dimension of a rectangle when total area and other dimension are known,
divide the known dimensions into the total area.
,4. A list price was set to leave the owner with $90,000 after a 6 percent
commission was deducted from the sales price. What was the list price?
A. $95,400
B. $95,745
C. $95,905
D. $96,000
B
$90,000 is left after 6% of the sale is taken out so 94% of the list price is $90,000
5. Which is the correct formula to determine the interest rate?
A. Interest rate = Interest earned / Principal
B. Interest rate = Interest earned x Principal x Time
C. Interest rate = Interest earned / Time
D. Interest rate= Interest earned x Time
A
The rate is the part divided by the whole.
6. The next monthly interest payment on a loan balance of$17,835 is $132.28. The
interest rate on the loan is
A. 6.78%.
B. 7.4%.
C. 8.9%.
D. 13.48%.
C
Monthly interest of $132.28 x 12 = yearly interest of $1,587.36
interest earned (part) / principal (whole) = rate
$1,587.36 / $17,835 = 0.089, or 8.9%
7. On a 70-foot-by-70-foot rectangular lot, the side yard building setbacks are 10
feet. The front yard setback is 25 feet, and the rear set back is 20 feet. What is the
maximum square footage possible for a one-story structure?
A. 1,000
B. 1,200
C. 1,250
D. 4,900
C
Building maximum width is 50 feet because there are 10-ft setbacks on each side.
Maximum depth is 25 ft because front yard and rear yard setbacks total 45 ft (70 ft - 45
ft). Multiply width (50 ft) by depth (25 ft) to find square footage
, 8. J purchased 4 lots at $12,000 each and divided them into 6 lots that were sold
for $9,600 each. What was J's percentage of profit based on his cost?
A. 6%
B. 12%
C. 20%
D. 24%
C
Four lots at $12,000 each = $48,000 cost
6 lots at $9,600 each = $57,600 selling price
$57,600 - $48,000 = $9,600 profit.
To find percentage, divide the net by the cost:
$9,600 (net) / $48,000 (cost) = 0.02, of 20%
9. K purchased a property for $175,000. K wishes to sell the property. If the total
selling costs will equal 11 percent of the sales price, how much will the property
have to appreciate in value for K to break even?
A. $19,612
B. $20,311
C. $21,629
D. $23,730
C
To break even, the sales price must be $175,000 plus 11% of the sales price, so
$175,000 = 89% of the sales price
$175,000 (part) / 0.89 (rate) = $196,629
Sales price $196,629. But the question asks for appreciation, so $196,629 - $175,000 =
$21,629
10. A mill would be expressed as
A. $0.001
B. $0.01
C. $0.1
D. $1.0
A
A mill is a tenth of a cent, and a cent is 0.01
11. A house purchased four years ago for $50,000 has increased in value by 10
percent each year since purchase. The house is now worth
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