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Question 1 of 25
1. Question
Bill paid $240,000 for some income units. The land was valued at $16,500, and improvements at $35,640. Using the previous figures for depreciation for income tax purposes, which of the following most nearly reflects the depreciable amount?
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Question 2 of 25
2. Question
If a person borrowed $10,000 on a straight note and paid $50 interest every 90 days, what would be the interest rate?
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Question 3 of 25
3. Question
Two appraisers, one using a capitalization rate of 10% and the other one 8%, both agree that the net income of a building was $11,200. The higher capitalization rate made the price of the building:
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Question 4 of 25
4. Question
Broker Bob listed a home for sale for $200,000. He presented the seller with an offer which was 15% less than the listed price. The seller said he would accept the offer if the Broker Bob agreed to reduce her 6% commission by 162/3%. If Broker Bob agreed, how much commission would he receive?
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Question 5 of 25
5. Question
Jane purchased a house for $100,000 with a down payment of 25% of the purchase price. The balance was financed on a 30year amortized loan with interest at 8% per annum. The lender requires monthly impounds for property taxes of $1,000 per year and casualty insurance costing $788 for a three year policy. Assuming that the first monthly payment on the principal is $217, the total amount the buyer will have to pay the first month will be approximately:
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Question 6 of 25
6. Question
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?
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Question 7 of 25
7. Question
A lot sold for $18,950. This included a profit of 7%. The original cost of the home was approximately?
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Question 8 of 25
8. Question
The investor criterion for a home mortgage is an uninsured loantovalue ratio of 90% of the appraisal. The sales agreement and appraisal is in the amount of $180,000. Following underwriting guidelines, the buyer qualifies for a loan of $145,000. How much of the purchase will be financed by this investor?
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Question 9 of 25
9. Question
Jim bought a second trust deed and note that had a face amount of $1,800 on which he was allowed a 20% discount. If he received payments of $120 per month, including 8% interest, for 1 year, what was his percentage of return on his investment?
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Question 10 of 25
10. Question
Investors want to build an apartment house which will have a gross income of $3,000 per month and annual expenses of $7,000. The investors require a 8% capitalization rate on the investment. If the improvements cost $175,000, how much can the investors pay for the land?
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Question 11 of 25
11. Question
What is the salesman’s 40% of a 6% commission on a $32,000 sale?
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Question 12 of 25
12. Question
A man purchased income property for $240,000, which was returning 8% per annum on the gross investment. He paid $20,000 down, the balance on a long term straight loan on which he paid interest annually at 6%. Disregarding other expenses, the return on his equity was:
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Question 13 of 25
13. Question
A property had improvements totaling $200,000; annual net income before recapture of depreciation of $40,000; and economic life of improvements equal to 40 years. Applying the land residual technique using straight line depreciation and an interest rate of 10% results in:
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Question 14 of 25
14. Question
What is the salesperson’s 45% of a 6% commission on a $31,000 sale?
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Question 15 of 25
15. Question
Several years ago, Mr. Matthews bought property for $12,000, paying $2,000 in cash with the seller taking back a trust deed for the balance of the purchase price. Before any payments had been made on the trust deed note, he sold the property several months later for $24,000. His invested dollar in these circumstances is worth:
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Question 16 of 25
16. Question
Ned just sold his house for 9% less than he paid for it. The selling price was $105,900. What was the original purchase price?
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Question 17 of 25
17. Question
A seller has $5,000 closing costs, a $93,000 loan balance, and pays 7% commission on a $125,000 sale. What are his net proceeds from the sale?
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Question 18 of 25
18. Question
The lender’s underwriting criteria would accept a housing expense to income ratio of 33% and a ratio of total debt service of up to a maximum of 38% of monthly gross income. The applicant has an outstanding college loan payable at the rate of $150.00 per month and a car payment of $450.00 monthly. Gross annual income is established at $100,000 per annum. What is the maximum PITT the lender will approve?
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Question 19 of 25
19. Question
The house being appraised has no fireplace, but it does have a garage, and the appraiser estimates that a fireplace contributes $3,000 to the value of a home in that neighborhood. A nearby house that recently sold for $198,000 is similar except that it has a fireplace but no garage. The appraiser estimates that a garage contributes $12,000 to value. The adjusted sale price of the subject house is:
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Question 20 of 25
20. Question
A house fronts on two roads running at right angles to each other. The house touches one road for 2,660 feet and on the second road for 1,980 feet. Another property line is parallel to the shorter of the two roads and runs for 2,660 feet. The final boundary is a straight line connecting the open ends. How many acres does the property contain?
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Question 21 of 25
21. Question
An apartment’s financial statement disclosed the following: Gross income = $20,000; vacancy factor = 9%; operating expenses = $5,000; payments to amortize the existing 1st and 2nd deeds of trust = $300 monthly. Using a 12% capitalization rate, what is the value of the property?
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Question 22 of 25
22. Question
How much interest would a $6,000 loan earn in five years at 10% simple interest?
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Question 23 of 25
23. Question
What is the indicated value of a home if the others in the neighborhood sold recently for between $160,000 and $167,000, and the subject house has a pool (valued at $8,000 by the appraiser) that the others do not have?
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Question 24 of 25
24. Question
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%?
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Question 25 of 25
25. Question
A miniranch is being established on a newly acquired 25acre parcel of land. The new owner plans to enclose the property with a splitrail fence. The rectangular lot has 1,000 feet of frontage on the state road. How many feet of fencing will be needed?
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