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1. Mr. Smith's mortgage company gave him this annual report on his mortgage payments indicated that he paid $7,650 on this $90,000 mortgage. What interest rate is Mr. Smith paying?
a. 8%
b. 8.5%
c. 9%
d. 9.5%
2. Mrs. Smith is thinking of selling her home she has owned for the last 9 years. Mrs. South paid off 12% of her mortgage. The original mortgage was $32,000 at 7 ¼ % for 30 years. Her payment for principal and interest have been $218.65 per month. How much interest has Mrs. South paid on her mortgage during the 9 years?
a. $ 3,840.00
b. $19,670.04
c. $19,774.20
d. $23,604.48
3. You are interested in determining what a property sold for. The doc stamps on deed were $420. What was the purchase price?
a. $55,000
b. $58,000
c. $60,000
d. $63,800
4 .Mr. Brown paid $.50 per square foot for Lot A. He paid $10,000 for Lot B, which measures 200 ft. by 300 ft. Both lots together equal 2 acres. How much did Mr. Brown pay for Lot A?
a. $12,800
b. $13,560
c. $14,500
d. $14,650
5. A lot measures 250 ft. x 1,450 ft sold for $21,780 per acre. How much did it cost per square foot?
a. $ .50
b. $1.80
c. $2.20
d. $3.30
6. A competitor real estate company sold a house for $120,000 and the seller indicated that the total commission paid was $8,400. What was the commission rate that the real estate agency charged?
a. 6%
b. 7%
c. 7.5%
d. 8%
7. A duplex produces a 16% return of investment amounting to $22,000 per year. What did the owner pay for the property?
a. $125,500
b. $132,000
c. $136,500
d. $137,500
8. A building was sold for $87,000. The selling price represents a 16% profit. What was the original cost?
a. $ 68,000
b. $ 75,000
c. $ 82,000
d. $100,920
9. Mrs. Moore obtains a mortgage loan for $38,000 at 10% interest. Her principal and interest payments are $333.44 for 30 years. How much interest will Mrs. Moore pay to the bank in two months?
a. $316.53
b. $319.67
c. $633.20
d. $633.34
10. The interest portion of John's first mortgage payment is $360.00. The interest rate is 10% and he has obtained an 80/20 loan. What was the purchase price of his home?
a. $38,000
b. $44,000
c. $54,000
d. $60,000
11. The cost to produce a small commercial building is $116,000. The total years of economic life have been determined to be 40 years. What is the amount of annual depreciation?
a. $2,900
b. $3,000
c. $3,500
d. $3,800
12. Between 1998 and 2000, the population in Palatka, Florida area increased from 45,000 to 52,000. What percent increase in population was this?
a. 10%
b. 12%
c. 14%
d. 16%
13. A salesperson works for ABC Realty on a 60/40 commission split basis (60% to the salesperson and 40% to ABC Realty. The salesperson sells 50 acres of land at $1,300 per acre. The gross sales commission on this vacant land is 10% of the sales price. What will the broker's commission be from the sale?
a. $3,900
b. $3,500
c. $3,000
d. $2,600
14. Your brother had bought a time-share unit on St. Augustine Beach for $3,000 for the first week in December. He sold it for $2,700. What percent was your broker's loss?
a. 10.5%
b. 10%
c. 9.5%
d. 9%
15. A rectanglar-shaped lot has a frontage of 90 feet and a total area of 3,150 square yards. What is the depth of the lot?
a. 35 ft
b. 150 yd.
c. 315 ft.
d. 315 yd
16. John Jones monthly mortgage payment for principal and interest is $598.77 . John's annual property taxes are $1,800, his homeowners insurance is $600 and his flood insurance is $420 per year. John's mortgage payment is PITI. What will
the total monthly payment be?
a. $748.77
b. $783.77
c. $798.77
d. $833.77
17. Mary with XYZ Realty sold a house in her farm area for $225,000. Mary received $3,375 commission. What is the percent of the sales price was the commission to Mary?
a. 1%
b. 1.5%
c. 1.75%
c. 3%
18. What is the interest on a $121,000 mortgage at 6% rate of interest for 8 months?
a. $605
b. $607.11
c. $4,840
d. $7,260
19. What is the principal amount borrowed if a 7% rate of interest results in payment of $350 interest for a period of 6 months?
a. $8,000
b. $9,000
c. $10,000
d. $12,000
20. Mr. Johnson purchased a home for $145,000. Mr. Johnson gave an escrow deposit to the his buyer's broker of $1,800 earnest money deposit. The sales contract states that the buyer is to obtain a conventional first money mortgage of 90% of value. The Seller agreed to give back a purchase money second mortgage in the amount of $14,500. What taxes intangible and documentary stamp tax would Mr. Johnson have to pay at closing?
a. $507.50
b. $797.50
c. $1,522.50
d. $1,812.50
21. A homeowner who itemizes on IRS taxes is in the 25% tax bracket. This homeowner pays $3,000 in property taxes, $600 for hazard insurance and mortgage interest of $5,000. How much money does homeownership save this owner in taxes?
a. $ 900
b. $1,400
c. $2,000
d. $2,150
ANSWERS
1. b
Solution: $7, 650÷ $90,000 = .085 (8.5%)
2. c
Solution: $32,000 x .12 = $3,840
$218.65 x 12 months x 9 years = $23,614.20
$23,614.20 - $3,840.00 = $19,774.20
3. c
Solution: $420 ÷ .70 = 600 x $100 = $60,000
4. b
Solution: 200 ft. x 300 ft. = 60,000 sq. ft. (lot B)
43560 sq. ft. (acre) = 87,120 sq. ft. - 60,000 sq.ft. =
27,120 sq. ft. for A x $.50 = $13,560
5. a
Solution: $21,780 ÷ 43,560 sq. ft. = $.50 per sq ft.
6. b
Solution: $8,400 (commission) ÷ $120,000 (sales price) = .07 (7%)
7. d
Solution: $22,000 ÷ 16 = $137,500
8. b
Solution: 116% = 1.16
$87,000 ÷ 1.16 = $75,000
9. c
Solution: $38,000 x .10 = $3,800 ÷ 12 = $316.67; $333.44 - $316.67 = $16.77
$38,000 - $16.67 = $37,983.23 x .10 = $3,798.32 ÷ 12 months = $316.53 + $316.67 = $633.20
10. c
Solution: $360 x 12 months = $4,320 ÷ .10 = $43,200 ÷.80 = $54,000
11. a
Solution: $116, 000 ÷ 40 years = $2,900 annual depreciation
12. d
Solution: 52,000 - 45,000 = 7,000
7,000 ÷ 45,000 = .16 (16%)
13. d
Solution: $1,300 x 50 acres = $65,000 gross sales price
$65,000 x .10 (commission) = $6,500
$6,500 x .40 = $2,600
14. b
Solution: $3,000 - $2,700 = $300
$300 ÷ $3,000 = .10 (10%)
15. c
Solution: 90 ft. ÷ 3 ft. = 30 yds.
3,150 sq. yards ÷ 30 yds. = 105 yards or 315 ft.
16. d
Solution: $1,800 taxes ÷ 12 months = $150 taxes per month
$600 insurance / 12 months = $50 insurance per month
$420 ÷ 12 months = $35 flood insurance per month
$598.77 + $150 + $50 + $35 = $833.77
17. b
Solution: $3,375 ÷ $225,000 (Sales Price) = 1.5%
18. c
Solution: $121,000 x .06 = $7260
$7,260 ÷ 12 months = $605
$605 x 8 months = $4,840
19.c
Solution: 7% x 6 months
(time must be expressed in years, or portions fo years, since interest rates are understood to be annual rates (unless otherwise indicated)
.07 x .5 (half a year) = .035
$350 ÷ .035 = $10,000
20. d
Solution: $145,000 (sales price) ÷ 100 = $1450 x .70 = $1,015.00
Intangible tax on a new mortage
$145,000 x .90 = $130,500 x $.002 tax rate = $ 261.00
Intangible tax on new 2nd mortgage:
$14,500 x .002 = $ 29.00
Documentary Stamp Tax on notes
$130,500 ÷ 100 increments = 1305 x .35 = $ 456.75
$14,500 ÷ 100 = $145 x .35 = $ 50.75
Total $1,812.50
21. C
Solution: You can deduct property taxes and mortgage interest, but not hazard insurance.
$8,000 x .25 = $2,000
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