1. The broker of Happy Valley Realty recently sold a home for $79,500. The broker charged the seller a 6.5 percent commission and will pay 30 percent of that amount to the listing salesperson and 25 percent to the selling salesperson. What amount of commission will the listing salesperson receive from the sale?

a.  $1,291.87                 c. $3,617.25

b.  $1,550.25                d.$5,167.50

2. A buyer signed an agreement to purchase a condominium apartment. The contract stipulates that the seller must

      replace the damaged bedroom carpet. The buyer has chosen carpet that costs $16.95 per square yard plus $2.50

      per square yard for installation. If the bedroom dimensions are as illustrated, how much will the seller have to

      pay for the job?

15

9.54

12

a. $189.20           c.      $277.16  

       

b.   $241.54           d.      $2494.5

 

 

 

 

 

 

 

4277.

 

c. $277.16

d. $2,494.50

 

 

3. H, 0,R and  M decided to pool their savings and purchase a small apartment building for $125,000. If H

      invested $30,000 and  O and R  each contributed $35,000. what percentage of ownership was left for M?

 

a.  20 percent    c.  28 percent

b.  24 percent   d.  30 percent

                     

 

 

 

 

 

4. A father is curious to know how much money his son and daughter-in-law still owe on their mortgage loan. The father knows that the interest portion of their last monthly payment was $391.42. If they pay interest at the rate of ll¹/2 percent, what was the outstanding balance of their loan before this last payment was made?

a.  $34,284.70               c. $40,843.83

b.  $36,427,50               d. $43,713.00

5.  A home was purchased a year ago for $98,500. Property in the neighborhood is said to be increasing in value at a rate of 5 percent annually. If this is true, what is the current market value of the home?

a. $93,575        c. $103,425

b. $93,809        d. $104,410

6.  A home is valued at $95,000. Property in the area is assessed at 60 percent of its value, and the local tax rate is $2.85 per $100. How much are the annual taxes?

a.  $135.38                    c. $1,624.50

b. $1,470.60                 d. $2,451

7.   Two homeowners plan to construct a patio in their backyard. An illustration of the surface area to be paved appears here. If the cement is to be poured as a six-inch slab, how many cubic feet of cement will

be poured into this patio?

 

a.        195

b.        330
c.        450

d.        660

8. A salesperson receives a monthly salary of $1,000 plus 3 percent commission on all of his listings that sell and 2.5 percent on all of his sales. None of the listings the salesperson took sold last month, but he received $4,175 in salary and commission. What was the value of the property he sold?

a. $117,000       c. $132,500

b. $127,000       d. $135,833

9. Because one residence has proved difficult to sell, a salesperson suggests it might sell faster if the owners enclose

a portion of the backyard with a privacy fence. If the area to be enclosed is as illustrated, how much will the fence cost at $6.95 per linear foot?

a.  $955.63

b.  $1,615.88

c.  $1,911.25

d.  $450,000

    

For questions 10 through 13 regarding closing statement prorations, base your calculations on a 30-day month. Carry all computations to three decimal places until the final solution.

 

10. A sale is to close on March 15. Real estate taxes for the current year have not been paid; taxes for last year amounted to $ 1,340. What is the real estate tax proration to be credited to the buyer?

a.  $260.33                   c. $1,060.84

b.  $279.16                   d. $1,116.60

 

11. A buyer assumes an outstanding mortgage, which had an unpaid balance of $58,200 after the last payment on August 1. Interest at 12 percent per annum is paid in arrears each month; the sale is to close on August 11. What is the mortgage interest proration to be debited the seller at closing?

a. $213.40        c. $582.00

b. $368.60        d. $698.40

 

12.   In a sale of residential property, real estate taxes for the current calendar year amounted to $975 and have already been paid by the seller. The sale is to close on October 26. What is the real estate tax proration to be credited the seller?

a. $83.96         c. $173.33

b. $162.50        d. $798.96

 

13. A buyer assumes a seller's mortgage. The unpaid balance after the most recent payment (September 1) was

$61,550. Interest is paid in arrears each month at 13 percent per annum. The sale is to close on September 22.

What is the mortgage interest proration to be credited the buyer?

a. $177.82        c. $666.97

b. $488.97        d. $689.01

 

14.   A 100-acre farm is divided into house lots. The streets require one-eighth of the whole farm, and there are 140 lots. How many square feet are in each lot?

a. 27,225                     c. 35,004

b. 31,114                     d. 43,560

 

15.   The commission on a sale was $14,100, which was 6 percent of the sales price. What was the sales price?

a. $154,255       c. $235,000

b. $234,500       d. $846,000

 

16. Compute the square feet of living space in this house.

 

 

a.  1,720

b.  1,728

c.   1,752

d.  1,761

17. Find the cubic yards in a bedroom measuring 9' high, 12' long and 12' wide,

a.    48                             c. 144

b. 108                           d. 1,296

 

18. An estate, listed on a multiple-listing service with a commission to the selling broker of 3.5 percent, sold for the full asking price of $2.25 million. What was the commission to the selling broker?

a. $7,875                      c. $78,750

b. $77,875         d. $78,890

 

19. With the incentive plan of increased commissions based on increased earnings for the firm, salesperson J now earns 65 percent of the office retention on her sales. She recently sold a property for $325,000, which was listed with her own office with a real estate fee of 6¹/2 percent. What was J's share of the fee ?

a.  $7,393.75                 c. $37,312.50

b. $13,731.25              d. $73,937.50

 

20. If a lot measures 65,340 square feet, how many acres does it contain?

a.    ³/4                             c. 2

b. 1¹/2                           d. 2¹/2 

                          

21. If taxes on a property are $5,800 based on an assessed value of $145,000, what is the millage?

a.  .04                            c. 4.0

b.  .40                            d. 40.0

 

22.   A couple wish to list their house with a licensee at a price that will net them $260,000 after the licensee's 7 percent real estate fee is paid. What does the licensee suggest as a minimum listing price, calculated to the nearest $100?

a. $269,500       c. $278,200

b. $275,500       d. $279,600

 

23.   A couple wish to purchase a house with an annual combined tax and insurance payment of $4,200. Their combined annual income is $82,000, and the bank offers a mortgage amortizing at 11.30 per month per thousand. The bank requires that the monthly mortgage payment, including taxes and insurance, cannot exceed 28 percent of the combined annual gross income. What mortgage can this couple qualify for?

a.  $138,348                  c. $169,300

b. $158,313                 d. $191,313

 

24.   A property sells for $875,000 with an annual return of 11 percent. What is the annual income on the property?

a.  $79,545.45               c. $95,545.45

b. $87,500.00              d. $96,250.00

 

25.   Another property sells for $275,000 with an annual income of $28,875. What rate of return will the buyer receive on this investment?

a.  9³/4%                         c. 10¹/2%

b.  10¹/4%                         d. 11%

ANSWERS

MATH QUESTIONS

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