CA Real Estate Real Estate Mathematics 3

Question 1

A home was purchased for $280,000 and appreciated 5% per year for 3 years. What is the approximate value at the end of 3 years?

Accepted Answer

$322,050

Answer

$322,000

Answer

$318,000

Answer

$310,000

Question 2

A property sells for $525,000. The buyer puts down 20%. The lender charges 2 discount points. How much do the discount points cost?

Accepted Answer

$8,400

Answer

$10,500

Answer

$7,350

Answer

$6,300

Question 3

A property has a net operating income of $24,000 per year. Using a 8% cap rate, what is the estimated value?

Accepted Answer

$300,000

Answer

$192,000

Answer

$288,000

Answer

$240,000

Question 4

A buyer qualifies for a maximum monthly payment of $2,200 (PITI). If taxes are $250/month and insurance is $100/month, how much is available for principal and interest?

Accepted Answer

$1,850

Answer

$2,200

Answer

$1,950

Answer

$2,100

Question 5

A lot is described as being 1/4 of a section. How many acres does it contain?

Accepted Answer

160 acres

Answer

40 acres

Answer

80 acres

Answer

320 acres

Question 6

An investment property was purchased for $400,000 and sold 5 years later for $520,000. What is the total return on investment (ROI)?

Accepted Answer

30%

Answer

20%

Answer

25%

Answer

35%