Real Extate Prep Exam: Part 8

  1. Developed by: Kawana

Question 1: A property owner wishes to net $56,500 form the sale of her small building. After paying an advertising allowance of $160 and 7 percent commission, what must the selling price be, rounded to the nearest dollar?
$60,925
$60,626
$60,455
$60,753

Question 2: A home valued at $168,500 has just had a 70 percent mortgage loan placed on it. The interest rate is 11.25 percent. The monthly payment is $1,292.22 including principal and interest. What will the principal balance of the mortgage loan be after the next monthly payment is made?
$117,560.28
$117,950.00
$117,913.56
$117,763.56

Question 3: A parcel of vacant land has an assessed valuation of $247,550. If the assessment is 85 percent of market value, what is the market value?
$315,732.50
$1,830,333.33
$323,000.00
$320,000.00

Question 4: A real estate licensee leased a building for 10 years at an annual rent of $48,000. She will receive a commission of 7.5 percent for the first 5 years, 5 percent for the next 3 years, and 3.5 percent for the final years. What will her income be from this commission over the life of the lease?
$25,200
$18,000
$28,560
$30,000

Question 5: A $75,000 mortgage loan requires a discount of $1,875 to be paid by the seller. How many points is this equivalent to?
2.5
4.5
5
2

Question 6: 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 a 7 % commission of the sale. If the lost sells for full asking price, how much is the broker's fee?
$2,500
$1,250
$2,000
$1,500

Question 7: If a mortgage lender intends to yield 10 3/8 percent on a 30-year loan and charges 9 3/4 percent interest, how many points should the lender charge?
8 points
7 points
5 points
4 points

Question 8: If the borrower paid $189.06 interest on a $27,500 loan, what is the interest rate?
8 1/2 %
7 3/4 %
7 1/2 %
8 1/4 %

Question 9: A building is valued at $100,000 using a capitalization rate of 8 percent. If an investor demands a capitalization rate of 10 percent, the value of the building will
increase by 20 percent
decrease less than $10,000
increase by less than 20 percent
decrease more than $10,000

Question 10: The taxes for 1994 are $1743.50 and have not been paid. If the sale is to be closed on August 12, 1994, what is the tax pro-ration that will be charged to the seller based on a 360-day year?
$1,220.26
$1,075.15
$668.26
$1,104.05

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