Math #2

What is the salesperson’s 45% of a 6% commission on a $31,000 sale?

A $7,000 loan is sold to an investor for $6,500. It is a straight note, due and payable at the end of one year. It bears a 9% interest rate. What percentage return on the principal dollar invested will be made by the investor?

A building that has an effective gross income of $65,000 and total operating expenses of $6,500 has a net income ratio of:

A deposit receipt states, “Buyer to assume existing first trust deed of $8,000 at 6-1/2% paid per quarter.” If Mr. Pinkham took possession February 15th and the first interest payment was due on March 15th, how much would Mr. Pinkham pay on the next interest date?

Kevin Holstead, the owner of a commercial building, estimates the depreciation of the physical plant at $15,000, the furniture and fixtures at $8,000, and the machinery at $7,500. If he is in the 40% bracket, his tax savings would be:

What will the amount of taxes payable be if the property’s assessed value is $85,000 and the tax rate is 50 mils in a community where the equalization factor is 120%?

There was fire insurance on a building valued at $12,000. The cost of the policy was $166.40 for a three-year period. The policy became effective on March 1, 1992. On November 16, 1992, the owner sold the building and canceled the policy. What was the value of the unused portion of the policy?

Broker John and Broker Jay agreed to divide a 4 1/2% commission equally on the sale of a home, which sold for $180,000. Sue, the listing salesperson, works for Broker John on a 50-50 commission split. Sue would receive approximately how much commission as a result of the sale?

Cindy purchased a lot for $40,000. She has been asked to build an apartment house with a projected income of $20,000 per year. Her accountant estimates all expenses, including proper management, repairs, etc., to be $12,000 per year. Cindy wants a 10% return on her investment. Which of the following is nearest to the amount she can afford to pay for the erection of the building?

The principal balance on a loan is currently $58,500. The scheduled monthly payment on the loan, including principal and interest, is $550. All of the payment goes toward interest, except for $46. What is the interest rate?

‘FHA mortgage insurance premium is calculated at a rate of 0.5% annually. How much is the premium for the month in which the remaining principal owed is $92,347?

A property is sold for $75,600 in cash. If transfer taxes are $.55 per $300 of value, how much transfer tax is due?

Lot “X” is an acre. Lot “Z” is 2/3 of the size of lot “X.” Lot Z was purchased for $16,000. The two lots were divided into as many parcels as possible, all measuring 110′ by 82.5′ each. Each parcel was sold for $6,500. The total selling price was 25% profit on the original investment. What was the purchase price of lot “X?”

If a lender agrees to make a loan based on an 80% LTV, what is the amount of a loan for a property appraised for $135,000 and a sale price of $137,800?

Mrs. Adams owned an income property with an adjusted cost basis of $160,000 and a fair market value of $240,000. She exchanged the property for another income property which had a fair market value of $230,000. Both properties had no loans against them and no adjustment was made for the differences in value. For federal income tax purposes, the new property will have a basis for Mrs. Johnson of:

A property sold for $19,000 with a first trust deed assumed at $15,500. Deducting commission of 8% and costs at $260, how much would the seller receive from escrow?

How many acres are in the S 1/4 of the SE 1/4 of Section 10 and the N 1/2 of the NW 1/2 of Section 3 and the N 1/2 of the NE 1/4 of Section 16?

Assuming that the real property taxes on an income property increased $700 per year and all other expenses and income remained the same. The value of the property would decrease by which of the following amounts if you used a capitalization rate of 10%?

John has a loan for $18,000 with interest to be paid at the rate of $225 quarterly. What is the interest rate on the loan?

Jill sold a house and carried back a promissory note for $13,340, secured by a 2nd trust deed. She then sold the note at close of escrow to an investor for $6,670. What was the amount of the discount?

An apartment building cost $600,000. It brings in a net income of $4,000 per month. The owner is making what percentage of return on the investment?

Mary sold her house and took back a second trust deed for $5,400. She immediately sold it for $4,050. What was the rate of discount?

A 20-unit apartment building is valued at $800,000 based on a 10% capitalization rate. If the rent for each unit increased $20 per month, what would the value of the same building be based on a capitalization rate of 16%?

The regular monthly payment on a loan, including principal and interest, was $560. All of the payment went toward interest, except for $45. The principal balance on the loan during that month was $55,500. What was the interest rate?

How many acres are in the NW 1/4 of the SE 1/4 of Section 10 and the SE 1/4 of Section 3 and the N 1/2 of the NE 1/4 of Section 16?