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NATIONAL MATH MODULE EXAM
Complete Q&A Study Guide (Verified
Questions & Answers)
A rented office space has a monthly income of $3,800. A
suitable gross income multiplier derived from market data is
11.1. What would the estimated value be? Round to the
nearest $1,000.
A: $380,
B: $422,
C: $506,
D: $342,000 - CORRECT ANSWER C: $506,
A strip mall generates $215,000 in effective rental income and
$3,000 in other income. The same mall has $102,000 in
operating expenses and $15,000 as reserves. What is the net
operating income of the strip mall?
A: $113,000 B:
C: $101,
D: $116,000 - CORRECT ANSWER C: $101,
How many acres are there in the N ½ of the NE ¼ and the NE ¼
of the SE ¼ of a section?
A: 20 acres
B: 40 acres
C: 80 acres
D: 120 acres - CORRECT ANSWER D: 120 acres
A property is being appraised using the income capitalization
approach. Annually, it has an estimated gross income of
$48,000, vacancy and credit losses of $3,600, and operating
expenses of $15,000. Using a capitalization rate of 8%, what is
the property's value (rounded up to the nearest $1,000)?
A: $413,
B: $368,
C: $340,
D: $600,000 - CORRECT ANSWER B: $368,
An FHA-insured loan in the amount of $57,500 at a 6 ½%
interest rate for 30 years was closed on March 17. The first
monthly payment is not due until May 1. If the interest is paid
monthly in arrears, how much pre-paid interest does the buyer
owe at closing? (Use a 360-day year)
A: $145.
B: $311.
C: $551.
D: $3,737.50 - CORRECT ANSWER A: $145.
If a square-shaped lot measures 125' on one side, what is the
square footage of the lot?
A: 250'
D: $1,020,000 - CORRECT ANSWER C: $786,
What is the number one rule of adjusting properties when using
the sales comparison approach to value?
A: If the comparable is inferior to the subject, subtract value
from the comparable.
B: If the comparable is superior to the subject, add value to the
comparable.
C: Never adjust the subject property
D: Always use assessed value, not market value - CORRECT
ANSWER C: Never adjust the subject property
Six years ago a commercial property owner paid $490,000 for
her complex which included 10 acres of land valued at
$100,000. Using a 40-year straight-line depreciation method,
what would be the current value of the apartment complex?
A: $330,
B: $390,0 00
C: $400,
D: $431,500 - CORRECT ANSWER D: $431,
The current value of a property is $60,000. For real estate tax
purposes, the property is assessed at 30 percent of its current
value, with an equalization factor of 1.25 applied to the
assessed value. If the tax rate is $4 per $100 of assessed
valuation, what is the amount of tax due on the property?
A: $
B: $
C: $1,
D: $2,250 - CORRECT ANSWER B: $
A fine jewelry store leased a space at the mall with a base rent
of $1,800 a month, plus 4% of all sales over $200,000. If the
gross sales were $325,000, what was the total amount of rent
paid by Heinz Fine Jewelry at the end of the year?
A: $26,
B: $21,
C: $125,
D: $5,000 - CORRECT ANSWER A: $26,
A 198-foot x 330-foot lot sold for $30,000. What was the
price per acre? A: $20,
B: $21,
C: $30,
D: $43,560 - CORRECT ANSWER A: $20,
An apartment building that sold for $780,000 had a
monthly gross income of $8,000. What is its monthly gross
rent multiplier? A: 97.
B: 62.
C: 103
D: 158 - CORRECT ANSWER A: 97.
What is the volume of a 90' x 20' x 12' house?
A: 21,600 cubic feet
B: 1,800 cubic feet
Stacey owns a lot that has 180 feet of front footage and
contains 36,000 square feet. He purchases two identically-sized
lots adjacent to each side of his lot. These side lots are each 200
feet deep and each side lot contains 19,000 square feet. What
is the total front footage of all three lots?
A: 190 B:
C: 275
D: 370 - CORRECT ANSWER D: 370
A seller leaves a buyer approximately one half of a tank of heating oil at the closing. If the tank measures 4' x 2' x 3', how many cubic feet did the buyer receive? 8 cubic feet 24 cubic feet 12 cubic feet 24 square feet - CORRECT ANSWER 12 cubic feet 4 x 2 x 3 = 24 24/2 = 12 If a square-shaped lot measures 200' on one side, what is the square footage of the lot? 4, 40, 400 40 - CORRECT ANSWER 40,
200 x 200 = 40, A developer wants to develop a 20-acre subdivision. He figures that the streets and common area will take up about 25% of this overall area. If the minimum lot size is to be 10,000 SF, how many lots can the developer have on this property? 43 65 86 66 - CORRECT ANSWER 65 20 x .25 = 5 20 - 5= 15 x 43560 = 653, 653,400/10,000 = 65. John bought an odd-shaped lot that was 100 feet deep, but the front footage was 160 feet and the length of the back side of the lot was 80 feet. What is the square footage of his lot? 16,000 SF 8,000 SF 24, 12,000 SF - CORRECT ANSWER 12,000 SF 160 + 80 = 240 240/2 = 120 120 x 100 = 12, If an investor wants to combine a 3/4 acre parcel with a 1.6 acre parcel, how big will the parcel be, expressed as a decimal? 2.35 acres 2.5 acres
$187,500 - CORRECT ANSWER $197,
1,250 x 2 = 2, 200,000 - 2,500 = 197, What is the GIM of a strip mall with annual income of $547,500 and a value of $6,345,000?
11.6 - CORRECT ANSWER 11. 6,345,000/547,500 = 11. A commercial property sold recently for $620,000. The property had an NOI, or net income, of $45,000. What was the capitalization rate at which this property sold?
0.062 - CORRECT ANSWER 0. 45,000/620,000 = 0. What is the GIM of a gas station with Annual rent of $104,400 and a value of $970,000?
The Browns obtain a fixed-rate amortized 30-year loan for $310,000 @ 6% interest. If the monthly payments are $1,815, how much interest do the Browns pay in the first month of the loan? $1, $1, $ $1,495 - CORRECT ANSWER $1, 310,000 x .06 = 18, 18,600/12 = 1, A loan applicant has an annual gross income of $76,000. How much will a lender allow the applicant to pay for monthly housing expense to qualify for a loan if the lender uses an income ratio of 30%? $2, $2, $2, $1,900 - CORRECT ANSWER $1, 76,000 x .3 = 22, 22,800/12 = 1, How much is a discount point? 1/8% of the loan amount $1,
99.9 - CORRECT ANSWER 9.
42,000 x .32 = 13, 13,440/12 = 1, An investment property generates a cash flow of $550,000 and has a ROI of 12%. What is the value of the property assuming the numbers above (to the nearest thousand)? $4,583, $66, $6,111, $2,619,000 - CORRECT ANSWER $4,583, 550,000/.12 = 4,583, A home that was purchased for $440,000 with a $320,000 loan is now worth $530,000. The current loan balance is $280,000. What is the homeowner's equity? $120, $160, $250, $280,000 - CORRECT ANSWER $250, 530,000 - 280,000 = 250, An apartment complex generates $778,000 in effective rental income and $7, in other income. The same complex has $378,000 in operating expenses and $12,000 as reserves. What is the net operating income of the complex? $395, $407, $400, $387,000 - CORRECT ANSWER $395, 778,000 + 7,000 = 785,
An office building has NOI of $110,000, interest expense of $47,000 and annual depreciation of $16,000. Assuming a 28% tax bracket, what is its income tax liability? $17, $28, $10, $13,160 - CORRECT ANSWER $13, 110,000 - 47,000 - 16,000 = 47, 47,000 x .28 = 13, A homeowner paid $385,000 in cash for a house three years ago. The house sold today for $413,000. How much has the property appreciated in total? $9, $33, $28, $10,000 - CORRECT ANSWER $28, 413,000 - 385,000 = 28, A building generates $87,000 NOI after expenses and has a debt payment of $33,000. What is its cash flow? $54, $87, $120, $38,000 - CORRECT ANSWER $54, 87,000 - 33,000 = 54,
7% commission. She owes $200,000 on her loan. What is the minimum contract price that she can accept for her property? $268, $277, $223, $286,654 - CORRECT ANSWER $277, 200,000 + 50,000 + 8,000 = 258, 100% - 7% = 93% 258,000/.93 = 277, A restaurant generates $72,000 in sales per month. The lease calls for 2.2% percentage rent. What is the monthly rent amount? $1, $2, $1, $1,100 - CORRECT ANSWER $1, 72,000 x .022 = 1, 600,000/74,000,000 = 0. 0.0081 x 1,000 = 8. Sheryl's home is valued at $280,000. She has insurance coverage of $200,000 with an 80% co-insurance clause. If Sheryl has a damage claim amounting to $150,000, A town has a tax base of $74,000,000 and a budget of $600,000. What is the tax rate in terms of mills? 12.3 mill s 10 mills 8.1 mills 15.2 mills - CORRECT ANSWER 8.1 mills
how much will she receive from her policy? $107, $120, $133, $160,000 - CORRECT ANSWER $133, 280000 x .8 = 224, 200,000/224,000 = 0. 0.89 x 150,000 = 133, A property's real estate taxes are $1,400, and this amount is paid in arrears. The closing was on August 7th (day 219 of the year). How much did the seller have to pay the buyer for his/her share of the taxes? Assume the taxes remain the same, the seller owns the day of closing, and use the 365-day method. $ $ $ $844 - CORRECT ANSWER $ 1,400/365 = 3. 3.84 x 219 = 840 The Saunders carry a property insurance policy which covers 78% of the replacement cost of their insurable property, valued at $200,000. They have an 85% co-insurance requirement in the policy. If the family incurs a $170,000 loss, what amount will the Saunders recover? $144, $132, $148, $156,000 - CORRECT ANSWER $156, 200,000 x .78 = 156,
Land sells for $9,000 an acre. What will 750,000 SF of land sell for? Round to the nearest thousand. $105, $16, $129, $155,000 - CORRECT ANSWER $155, 1 acre = 43,560 sq ft 750,000/43,560 = 17. 17.22 x 9,000 = 154, How many acres are there in the N ½ of the NE ¼ and the NE ¼ of the SE ¼ of a section? 20 acres 40 acres 80 acres 120 acres - CORRECT ANSWER 120 acres 1 section = 640 acres 640/4 = 160 160/2 = 80 160/4 = 40 80 + 40 = 120 If a square-shaped lot measures 125' on one side, what is the square footage of the lot?
15,625 square feet 500' 1,855 square feet - CORRECT ANSWER 15,625 square feet 125 x 125 = 15, If a borrower's monthly interest payment on an interest-only loan at an annual interest rate of 7.3% is $877, how much was the loan amount (rounded to the nearest hundred)? $120, $100, $144, $134,200 - CORRECT ANSWER $144, 877 x 12 = 10, 10,524/.073 = 144, Stacey owns a lot that has 180 feet of front footage and contains 36,000 square feet. He purchases two identically-sized lots adjacent to each side of his lot. These side lots are each 200 feet deep and each side lot contains 19,000 square feet. What is the total front footage of all three lots? 190 200 275 370 - CORRECT ANSWER 370 36,000 + 19,000 + 19,000 = 74, 74,000/200 = 370 A home sells for $150,000 and has a mortgage loan balance of $100,000 at closing. If the commission is 5% and other closing costs are $6,000, what is the seller's net?
