#1.

1. 50 x 100 = 5,000 square feet

2. 43,560 ÷ 5,000 = 8+ lots

Answer: D

#2.

A Section is 1 mile on each side and contains 640 acres

½ mile x ½ mile would be ¼ section

640 ÷ 4 = 160 acres

Answer: C

#3

A. 36 sq. mi. x 10% = 3.6 square miles

B. 2 sections = 2 square miles

C. 4 square miles

D. 5,280 x 10,5601 mi x 2 mi = 2 square miles

Answer: C

#4

1. 110 x 30 = 3,300;

2. 395,340 - 3,300 = 392,040;

3. 392,040 ÷ 43,560 = 9 acres;

4. $5,250 x 9 = $47,250.

Answer: D

#5

1. 540 square yards x 9 = 4,860 square feet

2. 4,860 ÷ 45 = 108

Answer: B

#6

36 miles square is 36 miles by 36 miles

Since a township is 6 miles by 6 miles, this property 6 townships by 6 townships, a total of 36 townships

Answer: C

#7

1. $162,500 x .045 = $7,312.50

2. $7,312.50 x .50 = $3,656.25

3. $3,656.25 x .50 = $1,828.13

Answer: D

#8

A. 4,047 x 9 = 36,423 sq.ft.

B. 1 acre 43,560 sq.ft.

C. 196 x 196 = 38,416 sq.ft.

D. 41,460 sq.ft.

Answer: B

#9

1. $125,000 x .88 = $110,000 loan;

2. $139,750 - 110,000 = $29,750.

Answer: B

#10

1. $3,740 – 2,431 = $1,309;

2. $1,309 ÷ $3,740 = .35 = 35%

Answer: B

#11

Any time you reduce the loan balance, your percentage equity will increase. No calculator is needed.

Answer: C

#12

1. $5,000 x .11 = $550 annual interest;

2. $550 ÷ 12 = $45.83 monthly interest;

3. $51.61 payment - $45.83 interest = $5.78 principal

Answer: D

#13

1. $5,460 ÷ 5 years = $1,092 annual interest

2. $1,092 ÷ .084 interest rate = $13,000 loan

Answer: C

#14

1. $18,500 x .08 x 5 years = $7,400;

2. $20,000 x .04 = $800 (points);

3. $20,000 x .02 = $400 (prepayment penalty);

4. $7,400 + 800 + 400 = $8,600.

Answer: D

#15

1. $26,500 x .15 = $3,975 yearly interest;

2. $3,975 x 20 years = $79,500 total interest.

Answer: C

#16

1. $1,968 x .085 = $167. 28 x 3 years = $501.84;

2. $167.28 ÷ 12 = $13.94 x 10 months = $139.40;

3. $13.94 ÷ 30 = $0.46 x 20 days = $9.29;

4. $501.84 + 139.40 + 9.29 = $650.53.

Answer: C

#17

1. $80,000 x .2125 = $17,000 down payment;

2. $80,000 - 17,000 = $63,000 loan;

3. $63,000 x .1025 = $6,457.50 annual interest;

4. $6,457.50 ÷ 12 = $538.13 monthly interest;

5. $800 ÷ 12 = $66.67 monthly taxes;

6. $978 ÷ 36 months = $27.17 monthly insurance;

7. $538.13 + 66.67 + 27.17 + 119.00 = $750.97.

Answer: B

#18

1. $5,000 x 12 = $60,000 - 12,000 = $48,000 Net;

2. $48,000 ÷ .12 = $400,000 Property Value;

3. $400,000 - 300,000 Bldg. = $100,000 Land.

Answer: B

#19

1. $1,000 x 3 Months = $3,000;

2. $3,000 ÷ 5 years = $600 vacancy per year;

3. $1,000 x 12 = $12,000 Scheduled Gross Income;

4. $12,000 - 600 - 3,000 (expenses) = $8,400 Net;

5. $8,400 ÷ .10 = $84,000 value.

Answer: C

#20

$174,000 ÷ .08 = $2,175,000 Value.

Answer: C

#21

1. $400 x 12 = $4,800 annual income loss;

2. $4,800 ÷ .12 = $40,000.

Answer: C

#22

1. $91,740.00 + $1,291.80 = $93,031.80 to seller;

2. $93,031.80 = 94% of sales price;

3. $93,031.80 ÷ .94 = $98,970.

Answer: D

#23

1. $72,000 x 2 = $144,000 new value;

2. $144,000 - 52,000 = $92,000 new equity;

3. $92,000 ÷ 20,000 = $4.60.

Answer: B

24.

1. $30,000 x .07 = $2,100;

2. $30,000 x .05 = $1,500 x 4 = $6,000;

3. $30,000 x .03 = $900 x 14 = $12,600;

4. $2,100 + 6,000 + 12,600 = $20,700.

Answer: C

25.

1. 100% - 3.5% = 96.5%;

2. $34,790 = 96.5% of loan;

3. $34,790 ÷ .965 = $36,051.81.

Answer: C

#26

1. $18,000 x 2 = $36,000 invested;

2. $15,000 x 3 = $45,000 sale price;

3. $45,000 - 36,000 = $9,000 profit;

4. $9,000 ÷ 36,000 = 0.25 = 25% profit.

Answer: C

#27

1. $9,300 ÷ 3 = $3,100 markup;

2. $9,300 + 3,100 = $12,400 gross sales price;

3. $12,400 x .15 = $1,860 bad debts;

4. $12,400 - 1,860 = $10,540 net sales price;

5. $10,540 - 9,300 = $1,240 profit.

Answer: B

#28

1. 21,780 ÷ 140 = 155.57 front feet;

2. $17,424 x .40 = $6,969.60;3. $17,424 + 6,969.60 = $24,393.60 net;4. $24,393.60 = 90% of sales price;5. $24,393.60 ÷ .90 = $27,104;

6. $27,104 ÷ 155.57 = $174.22.

Answer: B

#29

1. Pick an easy listing price, such as $100;

2. $100 listed price, purchase price would be $80;

3. $100 - 80 = $20 profit;

4. $20 ÷ 80 = 0.25 = 25% profit.

Answer: C

#30Draw a picture:

1. 150 - 20 - 4 = 126

2. 50 - 4 - 4 = 42

3. 126 x 42 = 5,292

Answer: A

#31

A full township would contain 36 square miles, so ½ of a township would contain 18 square miles.

Answer: C

#32

1. 110 yards x 3 = 330 feet; 220 yards x 3 = 660 feet;

2. 330 x 660 = 217,800 square feet;

3. 217,800 ÷ 43,560 = 5 acres

Answer: B

#33

1. $265,000 x 4 = $1,060,000 annual income;

2. $1,060,000 x .32 = $339,200 expenses;

3. $1,060,000 - 339,200 = $720,800 net income.

Answer: B

#34

1. $8,100 = 45% of commission;

2. $8,100 ÷ .45 = $18,000 commission;

3. $18,000 = 6% of selling price;

4. $18,000 ÷ .06 = $300,000 selling price.

Answer: C

#35

1. 43,560 ÷ 4 = 10,890 square feet;

2. 10,890 ÷ 240 = 45.375 width.

Answer: D

#36

1. 100% - 12% = 88%;

2. $63,360 = 88% of selling price;

3. $63,360 ÷ .88 = $72,000;

4. $72,000 - $63,360 = $8,640.

Answer: D

#37

1. $150 ÷ 8 = $18.75 monthly interest;

2. $18.75 x 12 = $225 annual interest;

3. $225 ÷ $2,500 = .09 = 9%.

Answer: B

#38

1. $7,000 x .09 = $630 annual interest;

2. $945 ÷ $630 = 1.5 years = 18 months.

Answer: B

#39

$72,000 ÷ .12 = $600,000.

Answer: B

#40

1. $30,000 ÷ .05 = $600,000;

2. $30,000 ÷ .06 = $500,000;

3. $600,000 - 500,000 = $100,000.

Answer: B

#41

1. $75,000 Appraisal x .80 = $60,000 Loan;

2. $60,000 + 1,200 deposit = $61,200 credits;

3. $77,000 price x .03 = $2,310 closing costs;

4. $77,000 + 2,310 costs = $79,310 charges;

5. $79,310 - 61,200 = $18,110 balance due.

Answer: C

#42

No calculator is needed for this question!

1. Since no prepayment penalty was listed, Choices A and C are eliminated.

2. Since the 2nd TD has an alienation clause,it is not assumable, so Choice D is eliminated.

3. Only Choice B remains. Even at a 0% interestrate, the loan would not be fully repaid after 60 payments of 1%, so there would be a balloon payment

Answer: B

End of session