Optional Module: Additional Calculation Problems
Part 1: Square feet, yards, and acres
1.
What is the acreage of a lot measuring 300 yards by 150 feet?
a.
3.09
b.
.83
c.
7.43
d.
10.80
2.
David says that 1/5 of his land is not usable, 3/5 is under cultivation, and the
remaining 60 acres is a grass meadow. How many acres is the whole farm?
a.
9 acres
b.
300 acres
c.
111 acres
d.
None of the above
3.
Cynthia wants to subdivide a ten-acre tract into 60 by 100-foot lots. Allowing
85,600 square feet for the necessary streets, how many lots will she have in her
subdivision?
a.
58.3
b.
87
c.
116
d.
92
4.
A lot with 50 feet of street frontage, containing 1,280 square yards, has a depth of,
a.
24 feet
b.
72 feet
c.
144 feet
d.
230.4 feet
5.
A rectangular parcel of land 500 feet by 760 feet is equally split by a stream into
two triangular lots. The number of acres in one lot is most nearly,
a.
3.49
b.
4.36
c.
6.98
d.
7.98
6.
A subdivision contains 6 blocks. Each block is divided into 4 sections, and each
section is divided into 8 lots. This tract contains,
a.
104 lots
b.
c.
d.
140 lots
200 lots
192 lots
SOLUTIONS
1.
a
300 yds. x 3 feet = 900 feet x 150 feet = 135,000 s.f.
135,000. / 43,560 s.f. per acre = 3.099 acres
2.
b
Equation: total = .20 total + .6 total + 60
total - .20 total - .6 total = 60
total (1.0 -.20 -.6) = 60
.20 (total) = 60
total = 300 acres
3.
a
43,560 s.f. x 10 acres = 435,600 s.f.
435,600 - 85,600 needed = 350,000 remainder
350,000 / 6000 per lot = 58.3 lots
4.
d
1280 sq. yds. x 9 s.f. per yd = 11,520. s.f.
Equation: 50(depth) = 11,520
depth = 11,520 / 50 = 230.4 feet deep
5.
a
Equation: Area of triangle = .5(base)(height)
Area = .5(760)(500)
Area = 190,000 s.f.
190,000 / 43,560 s.f. per acre = 4.36 acres
6.
d
6 x 4 x 8 = 192 lots
Part 2: Tax assessment and bill
1.
A house has an assessed value of $36,000 and the lot has an assessed value of
$7,200. The property was taxed at a rate of $3.10 per $100 of assessed value. If
the assessed valuation is to be increased by 30%, what will be the amount of
taxes to be paid on the property?
a.
$2511.
b.
$1674.
c.
$1741.
d.
$2009.
2.
3.
If the annual real estate tax on a property with an assessed value of $73,000 is
$1,964., approximately what percent of the assessed value is the annual real
estate tax?
a.
.7%
b.
2.7%
c.
3.8%
d.
5.0%
The assessed value of a building and lot is $18,750. The tax rate is $4.90 per $100
of assessed value. The local vacancy rate is .06, and the market capitalization rate
is .12. What is the tax bill?
a.
$918.75
b.
$867.60
c.
$889.57
d.
$542.25
Part 3: Settlement
1.
Larry's house valued at $80,000 was insured for 85% of value. The cost of the
insurance was 70 cents per $100 of the face amount of the policy. He
paid
an annual premium on March 20. On September 30 of the same year, he closed
on the sale of his home. The unused value of the policy was purchased by the
buyer. What was the buyer's cost? (Use 360 days in the year)
a.
$260.81
b.
$257.86
c.
$476.
d.
$224.74
2.
Sonja sold John a duplex apartment that closed on September 20. The
September rent of $240.00 had been collected by Sonja on September 1. What is
John's prorata share of the September rent?
a.
$160.
b.
$180.
c.
$80.
d.
$8.
3.
Itzak bought a house for $65,900. The lender required a 40% down payment and a
1% origination fee plus $450 in closing costs. How much does Itzak need to
close?
a.
$26,623.59
b.
$27,282.60
c.
$27,205.40
d.
$40,253.60
4.
If a property was listed for sale at $30,000 and sold for $28,500, the 9% broker's
fee would appear in the seller's statement as
a.
debit seller $2565.
b.
credit seller $2565.
c.
debit seller $1800.
d.
credit seller $1800.
5.
An FHA loan in the amount of $57,500 at 11 1/2% for 30 years was closed on
June15. The first payment was due on July 1. What is the amount of the interest
adjustment payment the buyer had to make at the closing?
a.
$6,612.50.
b.
$551.04
c.
$293.89
d.
$275.52
6.
George bought a house for $50,000. and received an 80% loan at 12% interest. He
paid $1,000 as an earnest money deposit. How much cash did he need at closing
if he had the following expenses: attorney $200; survey $100; taxes $120; title
insurance $150?
a.
$10,570.
b.
$9,520.
c.
$50,520.
d.
$8,520.
7.
A property sold on June 30 is to be closed on July 31 of this year. The
insurance has been prepaid with a maturity date of January 31 of next year. What
amount is owed by the buyer assuming the policy if the total annual premium is
$400.? (Use 360 days in the year)
a.
$234.30
b.
$233.33
c.
$166.66
d.
$200.
8.
Matilda listed her house for $32,000. A prospective purchaser offers $31,000
provided the seller pays 6 discount points on a FHA loan of $28,000. If the
brokerage fee is 5 percent, what is the net amount Matilda will realize if she
accepts the offer?
a.
$24,820
b.
$27,770.
c.
$27,840.
d.
$27,920.
8.
Bob's sale will close on February 20. The real property taxes have not been
paid. The assessed value of the property is $67,500 and the tax value is 80% of
the assessed value. The tax rate is $1.50 per $100 of tax value. Using a 360-day
year, what is the proper entry on the seller's settlement statement?
a.
$697.50 debit.
b.
$112.50 credit
c.
$112.50 debit.
d.
$697.50 credit
9.
The selling price of Ali's property is $22,500. It can be financed if the buyer
can pay 10% down and a loan origination fee of 1.0%. How much cash must the
buyer have for this transaction to close?
a.
$2,770.80
b.
$2,452.50
c.
$2,055.37
d.
$2,617.35
SOLUTIONS
1.
d
$80,000. x .85 = $68,000. insured value
$68,000. / $100. = $680. x $.70 = $476. ins. prem.
$476. / 360 days = $1.322 prem. per day
Sept. 30 to March 14 = 165 days owed by buyer
$1.322 x 170 days = $224.74 owed by buyer
2.
c
$240. rent / 30 days = $8. per day
$8. x 10 days = $80. owed to John
3.
c
$65,900. x .40 = $26,360. down
Equation: ($65,900. $26,360.) .01 = $450. costs
$26,360. down. + $395.40 + $450. costs = $27,205.40 total
4.
a
$28,500. x .09 = $2,565. fee
5.
d
$57,500. x .115 / 12 mo. = $551.04 interest
$551.04 / 2 = $275.52
6.
a
$50,000. x .20 down = $10,000. down
$10,000. + $200. + $100. + $120. + $150. = $10,570. total
7.
d
$400. 360 days = $1.111 daily
July 31 to January 31 = 180 days
$1.111 daily x 180 days = $199.98 owed
8.
b
$28,000. x .06 = $1,680. points
$31,000. x .05 = $1,550. fee
$1,680. + $1,550. = $3,230. total
$31,000. - $3,230. = $27,770.
9.
c
$67,500. x .80 = $54,000. assessed value
$54,000. $100. = $540. x $1.50 = $810. taxes
$810. / 360 days = $2.25 taxes per day
January 1 to February 20 = 50 days
50 days x $2.25 = $112.50 owed by seller
10.
b
$22,500. x .10 = $2,250. down
$22,500. - $2,250. = $20,250 x .010 = $202.50 fee
$2,250. + $202.50 = $2,452.50 total
Part 4: Broker fees, return to investment, percent change
1.
Moche received $21,000 after the payment of a sales fee, of $1,340.40. The sales
fee was what percentage of the sales price?
a.
5.0%
b.
5.9%
c.
6.4%
d.
8.0%
2.
Hilda owns a building worth $90,000 and desires a 14% return. What net income
is needed each month to produce this return?
a.
$1,330.
b.
$133,000.
c.
$9,500.
d.
$1,050.
3.
A store rents for $185.00 per month and measures twenty by twenty-two feet.
What is the annual rent per square foot?
a.
$0.42
b.
$3.50
c.
$2.51
d.
$5.05
4.
Pablo will receive a 6% brokerage fee at closing. How much less will be received
in commission if the owner accepts an offer that is 5% less than the listed price
of $36,000?
a.
b.
c.
d.
$98.
$104.
$106.
$108.
5.
An $89,500 investment shows annual net earnings of 10 1/2 percent. What is the
quarterly return?
a.
$9,397.50
b.
$939.75
c.
$7,458.33
d.
$2,349.38
6.
A lot is 500' by 1000' and sold for $25,000. What was the price per acre?
a.
$1,042.
b.
$2,178.
c.
$1,333.
d.
$1,200.
7.
Brenda bought 15 acres of land at $1500.00 per acre. She built 12 houses at an
average cost of $20,000 each. She also spent $25,000 for a community pool. If
she wants to realize a 20% profit on her investment, what is the price of each
house?
a.
$29,688.
b.
$28,500.
c.
$27,344.
d.
$28,750.
8.
Svend bought a lot for $24,600. with a $4,600 downpayment and a mortgage for
the balance. He sold the lot for $26,568. What was the appreciation in value?
a.
9.8%
b.
6.0%
c.
8.0%
d.
7.4%
9.
I.
II.
III.
IV.
SALES PRICE
$53,000
$52,580
$54,200
$54,000
COMMISSION BROKER’S EXPENSES
7%
$100
6.5%
$400
7.0%
$890
7.5%
$990
By the above chart, which generates the most money after expenses?
a.
Sale I.
b.
Sale II.
c.
Sale III.
d.
Sale IV.
10.
Maria bought a home for $40,000 and later sold it for $32,000. What was her
percentage loss?
a.
5.0%
b.
20.0%
c.
95.0%
d.
14.3%
11.
What is the maximum purchase price for an office building if total annual rentals
are $75,000, total annual expenses are $9,000, and an annual return on
investment of 11 percent is desired?
a.
$600,000.
b.
$675,000.
c.
$825,000.
d.
$910,000.
SOLUTIONS
1.
b
$21,000. + $1,340.40 = $22,340.40 sales price
$1,340.40 / $22,340.40 = .059 rate
2.
d
$90,000. x .14 = $12,600. / 12 mo. = $1,050.00 mo.
3.
d
22 ft. x 20 ft. = 440. s.f.
$185. / 440 = $.4205 s.f. per month x 12 months = $5.05
4.
d
$36,000 x .95 = $34,200.
$34,200. x .06 = $2,052. commission
compared to $36,000. x .06 = $2,160 commission
$2,160. - $2,052. = $108. less
5.
d
$89,500. x .105 = $9,397.50 commission / 4 mos. = $2,349.38
quarter.
6.
b
500 ft. x 1000 ft. = 500,000. s.f. / 43,560 s.f. per acre = 11.478
acres
$25,000. / 11.478 = $2,178.08 per acre
7.
d
$1,500. per acre x 15 acres = $22,500. land
$20,000. cost x 12 houses = $240,000. houses
($22,500. + $240,000. + $25,000) = $287,500. x 1.20% profit = $345,000..
$345,000. needed / 12 houses = $28,750. each
8.
c
$26,568. - $24,600. = $1,968. profit
$1,968. / $24,600. = .08 rate
9.
a
($53,000.) .07 - $100. = $3,610.
($52,580.) .065 - $400. = $3,017.70
($54,200.) .07 - $890. = $2,904.
($54,200.) .07 - $990. = $3,075.
10.
b
$8,000. / $40,000 = .20 x 100 = 20.0%
11.
a
$75,000. - $9,000. = $66,000. / .11 = $600,000. max. price