# home equity loan, business and finance homework help

1. A 10-year-old property was recently appraised for \$257,000. It has depreciated 25% since it was new. What was it originally worth?
 a. \$342,667 b. \$355,886 c. \$356,925 d. \$392,125

1 points

### QUESTION 2

1. A borrower obtains a home equity loan in the amount of \$99,000, with semi-annual interest payments of \$4,331.25. What is the loan’s interest rate?
 a. 8.50% b. 9.0% c. 8.75% d. 9.25%

1 points

### QUESTION 3

1. A buyer is required in the deposit receipt to place in escrow four months’ prorated shares of property taxes and hazard insurance. The applicable tax rate is \$1.50 per \$100 of assessed value; the assessed value of the property is \$400,000. The premium for a three-year hazard insurance policy is \$1,800. How much must the buyer place in escrow?
 a. \$1,650 b. \$1,750 c. \$2,150 d. \$2,200

1 points

### QUESTION 4

1. A convenience store grosses \$555,000 annually. Its operating expense ratio is 83%. If the appraiser assigns a 7% capitalization rate, what is the estimated value of the property?
 a. \$1,347,857 b. \$1,492,345 c. \$1,901,211 d. \$1,950,443

1 points

### QUESTION 5

1. A fire insurance policy began on April 1. It cost \$1,900.80 for three years of coverage. The insurer canceled the policy on December 16 of the same year it was issued. If you use a 360-day year, which of the following figures is closest to the premium for the unused portion of the policy?
 a. \$448.80 b. \$1,399.20 c. \$1,452.00 d. \$1,504.80

1 points

### QUESTION 6

1. A home is presently appraised at \$550,000. Calvin bought it new four years ago. Since then it has depreciated 16%. The home was originally worth approximately:
 a. \$594,420 b. \$654,760 c. \$683,510 d. \$716,975

1 points

### QUESTION 7

1. A lender charges a borrower 3 points. How much money will the borrower have to have at closing if the sales price is \$445,000 and the lender is requiring a 20% downpayment?
 a. \$3,480 b. \$10,680 c. \$33,350 d. \$99,680

1 points

### QUESTION 8

1. A mortgage loan is 80% of the sales price. The loan’s interest rate is 9%, and the borrower makes semi-annual interest payments of \$24,750. What is the sales price?
 a. \$576,000 b. \$631,250 c. \$687,500 d. \$791,450

1 points

### QUESTION 9

1. A property recently sold for \$390,000. How much will the annual property taxes be if the tax rate is \$0.95 per \$100 of assessed valuation?
 a. \$837.45 b. \$994.67 c. \$2,900 d. \$3,705

1 points

### QUESTION 10

1. A salesperson sells an apartment building for \$2,500,000. She earns a commission of \$122,500. If she was paid a 7% commission on the first \$1,000,000 of the sales price, what was her rate of commission on the remainder of the sales price?
 a. 3% b. 3.5% c. 4% d. 6%

1 points

### QUESTION 11

1. Able makes \$1,200 quarterly interest payments on a term loan. If the interest rate is 9.5%, what is the amount of the loan?
 a. \$45,060 b. \$50,526 c. \$52,221 d. \$59,788

1 points

### QUESTION 12

1. An appraiser determines the property’s net operating income is \$125,350. If she applies a capitalization rate of 8%, what is the market value of the property?
 a. \$1,566,875 b. \$1,595,675 c. \$1,729,580 d. \$1,958,740

1 points

### QUESTION 13

1. Cortezar purchases a property for \$255,000 and puts 20% down. The monthly interest payments are \$1,742.50. What is the annual rate of interest?
 a. 9.50% b. 9.90% c. 10.10% d. 10.25%

1 points

### QUESTION 14

1. From the point of beginning, a property’s boundaries run 900 feet in a southerly direction; then due east for 1,250 feet; then in a northerly direction 300 feet; then back to the point of beginning. How many square feet are in the described parcel?
 a. 750,000 b. 775,000 c. 800,000 d. 805,000

1 points

### QUESTION 15

1. Johnson, a salesperson for ABC Realty, sold a home listed by ACME Realty for \$604,000. The companies split the 6% commission 50/50, and Johnson’s share of her company’s commission was 40%. What was the amount of Johnson’s commission?
 a. \$7,115 b. \$7,248 c. \$9,120 d. \$9,228

1 points

### QUESTION 16

1. Jones borrowed \$45,000 to purchase some office furniture. He agreed to pay 9.5% interest plus the amount borrowed at the conclusion of 20 months. What was the amount of the payment?
 a. \$42,550 b. \$47,650 c. \$52,125 d. \$54,675

1 points

### QUESTION 17

1. Smith bought a home six years ago for \$210,000. He wants to sell the property for a 25% profit after paying a 7% commission and \$1,750 in settlement costs. What would he have to sell the home for?
 a. \$234,500 b. \$241,216 c. \$284,140 d. \$350,090

1 points

### QUESTION 18

1. The asking price is \$345,000. The property sells for \$330,000. The commission is 6%. 60% of the commission goes to the broker and 40% goes to the salesperson. How much did the salesperson receive?
 a. \$7,920 b. \$8,280 c. \$11,880 d. \$12,420

1 points

### QUESTION 19

1. The broker’s commission is 7% of the sales price. What is the commission if the property sells for \$8.50 per square foot and its dimensions are 200′ x 175′?
 a. \$18,050 b. \$19,135 c. \$20,825 d. \$21,115

1 points

### QUESTION 20

1. The salesperson earned a 6% commission on the first \$500,000 of the sales price and 3% on that portion of the sales price that exceeded \$500,000. The commission was \$36,600. What was the sales price?
 a. \$720,000 b. \$741,000 c. \$753,000 d. \$754,500