APPRAISER I TEST - SAMPLE MATH QUESTIONS (08-16-91)
(Answers appear on page 7)

1. What is the yield on an investment of $15,000 for 3 years at 9%?

2. How much would you need to invest in order to earn $6,000 in 6 months at a rate of 12%?

3. Escrow is to close on February 1st. Taxes for the year were $2,400. The seller paid the first installment. How much money is due from the seller? From the buyer?

4. I want $80,000 net to me on the sale of my house. If total selling costs run 9%, what should I ask as a selling price in order to produce my net figure?

5. Escrow is due to close on April 14th. Rents are to be prorated. Total rental income for the month is $560.00. How much belongs to the seller? How much to the buyer? (Assume all months have 30 days, all years to have 360 days. The day of closing belongs to the buyer.)

6. How much can I afford to pay for an apartment house if it produces a net income of $6,800 annually and a market survey indicates I should earn 9.5% on my money?

7. A salesperson sells 2-3/4 sections of land to a subdivider for $50.00 per acre. What is the commission if the salesperson receives 60^ of a 5% commission? (Reminder: 1 section = 640 acres.)

8. A property sells for $21,250. You as the listing salesperson are to receive 12-1/2% of the total 7% commission collected on the sale. What amount will you receive?

9. A real estate broker, at closing, deducted a commission of 6%, and closing costs of $250. The seller then received $18,080. What was the selling price of the property?

10. An owner lists a property for sale with a broker to net $10,000 after paying the broker a 7% commission. The owner has a $14,000 first mortgage, a paving lien of $150 and owes taxes of approximately $500. At what (minimum) price would the broker have to sell the property?

11. A broker’s commission was $1,575 on the sale of a house for $22,500. What rate of commission was received?

12. A property sells for $85,000. The broker is to receive a commission of 8% on the first $50,000 of the sale and a lesser percent on the remainder of the selling price. If the total commission is $5,225, what rate of commission was received on the remainder of the selling price?

13. A broker’s office received a commission of $1,125 on the sale of a house. If the broker received a 6% commission, what was the selling price of the house?

14. Your contract with your broker gives the listing salesperson 10% of the 5% commission on all listings. The balance of the commission is to be divided equally between the broker and the salesperson who makes the sale. What amount of commission will be earned if you obtain the listing and also make the sale on a $240,000 property?

15. A property sold on the basis of a 5% commission of the first $100,000 of the sale and 2-1/2% commission on the excess over $100,000. The total commission was $8,750. What was the selling price of the property?

16. A broker is to receive a 6% brokerage fee when a property is sold. How much less will be received in commission if the owner accepts an offer that is 5% less than the listed price of $360,000?

17. Your commission is $1,207.80 for both selling and listing a house. If you share was figured on the basis of 15% of the total 6% commission for listing the house, and 40% of the total 6% commission for selling it, what was the selling price of the house?

18. Upon selling a property for $40,000, the seller nets $37,049.50 after deducted the broker’s commission and closing costs of $350.50. What rate of commission did the broker receive?

19. A woman bought 3 lots for $40,000 each, divided them into 4 lots for $33,750 each. What was her percent or gross profit?

20. George Brown, broker, has a property listed at $18,000. Jim White purchases it for $15,800 and sells it for $18,000. What percent profit did White make?

21. A house sold for $26,400 at a profit of 20%. What did the house originally cost?

22. John Doe sold his property for $18,050 and claims he sold at a 5% loss. What did he pay for the property originally?

23. A house originally cost $25,000. Two years later it was sold at 15% more than it cost. Subsequently, the new owner sold it for $27,025. At what percent profit or loss did the last owner sell the property?

24. A man purchased 10 acres of land at $200 per acre in 1940. Last year he divided the property into 1/4 acre lots. He kept 4 lots for himself, and sold the rest at a price per lot at 8 times the price per acre paid in 1940. What percent profit has he made to date of his total investment?

25. If you bought a house for the listing price less 25% and sold it for the listed price, what percent profit would you make?

26. Miller paid 422,000 for a property, which he later offered for sale at a 10% profit. When the property did not sell, he reduced the price 5%. The property sold at the reduced price and Miller paid his broker a 6% commission on the sale. How much did Miller gain or lose?

27. A builder sells a new home for $42,000, netting a 10% profit after deducting the brokers 6% commission. What did the house cost to build (to the nearest dollar)?

28. A lot 72 feet by 100 feet was purchased for $.25 per square foot and sold for $2,300 3 years later. If taxes of $95 yearly were paid on the lot, and if lost interest of 5% (simple interest) each year on the investment is counted as an expense, what is the amount of profit or loss?

29. Mrs. Marshall bought a house for $15,000 and made improvements on the home totaling $2,200. What percent profit did she make upon selling the house for $19,780?

30. If you purchase a property at a given price, offer it for sale at 25% more than you paid for it, then sell it at 20% less than the asking price, will you gain or lose money?

31. A business property valued at $85,000, to earn 15% on the total investment annually, should return a net monthly income in what amount?

32. Smith offers to sell an income property to Olson. The income is $260 per month and the total annual expenses are $1,020. Olson wants a 9% return on his investment. How much should he offer Smith for the property (to the nearest dollar)?

33. If an apartment building costing $120,000 has a net income of $800 per month, what percent would it be returning annually on the total purchase price? If you could purchase the building for a $30,000 cash down payment, what would the first year’s rate of return be on your case invested, considering additional expenses of $7,650 interest on the mortgage?

34. An apartment house has 8 apartments that each year rent for $200 per month. Total expenses for the year are $3,600. If a prospective buyer wishes a 12% return on the investment, what amount should the buyer offer the owner of the apartment house?

35. What is the capital worth of a property if the net income is $950 per month, and the appraiser has estimated that a 15% capitalization rate is appropriate for the property?

36. Joe Perkins purchased 2 4-plex apartment buildings for a total of $120,000. The first building shows a capitalization rate of 12% and the second building shows a capitalization rate of 10%. How much is his total net annual income if the first building cost twice as much as the second?

37. In the above problem, what was his annual rate of return on the total investment of $120,000?

38. A warehouse has a net annual income of $10,000. Appraiser A has estimated a capitalization rate of 12% would be appropriate for this type of income property. Appraiser B has estimated that a capitalization rate of 11% would be more likely. Which of the appraisers has set a higher value for the worth of the property?

39. What is the interest on $850 for 3 years, 4 months, and 15 days at 5-1/2% per annum?

40. A loan made June 13th is repaid September 26th. For how many days should the interest be calculated?

41. A man borrows $1,000 to be repaid in 9 months with interest at 6% per annum. What total amount must he pay at the end of 9 months?

42. If the rate of interest is 6% per annum and your monthly interest payment is $90, what is the amount of your loan?

43. What is the annual interest rate on a $9,000 loan when the interest payments are $180 per quarter on the loan?

44. A note is dated April 15, 2005 in the amount of $2,500. The interest rate is 8-1/2% per annum. How much interest will be due on March 10, 2006, if no interest has been paid until then?

45. What is the annual interest rate of a $7,500 loan when the interest payments are $206.25 semi-annually on the full amount?

46. If the annual 6% interest payment on a loan amounts to $480, what is the amount of the principal of the loan?

47. The loan on a property is 65% of its appraised valuation. If the interest rate is 5%, and the first semi-annual interest payment is $295.75, what is the appraised value of the property?

48. Parkes borrowed 42,500 on which he agree to pay 7% interest per annum. If he paid a total of $43.75 interest, how long did he keep the money?

49. A corporation developing a new shopping center borrowed $2,000,000, repayable in 6 years. If they repaid a total of $2,780,000, what was the yearly rate of simple interest charged?

50. A purchaser obtains a 75% loan on a new home at an annual interest rate of 8-1/2%. The first month’s interest is $212.50. What is the purchase price of the home?

51. Of a particular farm, 1/5 is in pasture, 5/8 is under cultivation, and the remainder is 56 acres of woodland. How many acres are in the whole farm?

52. Jean Jones inherited $6,300, which was 2-1/4 times greater than her sister Linda received. How much did Linda inherit?

53. 205 is 2-1/2% of what amount?

54. How much additional cash must a buyer furnish in addition to the $1,400 earnest money deposit if the lending institution grants 60% on a $24,000 home?

55. Part of a farmer’s land is to be sold, but 3/8 is to be given to a son, and 1/6 to a nephew. What part of the land is left to sell?

56. What is the purchase price of a property, if a 205 earnest money deposit is $3,160?

57. Smith and Johnson buy an apartment building for $45,000. Smith contributes $27,000 to the purchase price and Johnson contributes $18,000. At the end of the first year, the net profit is $3,500. How much will each receive?

58. If a scale drawing of a lot is drawn in a scale of 1/4 inch equals 1 foot, what is the actual measurement of the lot if the drawing is 10 inches by 15-1/2 inches?

59. If on a scale map, 4-1/2 inches represents 270 miles, in what scale is the map drawn? (1 inch = ?? miles)

60. If 3 men can saw 6 trees in 1/2 hour, how many trees can 4 men saw in 3 hours? (Assume that all men work at the same speed.)

61. Compute the following: (2-1/2 / 3-1/4) + 1-1/2.

62. Mrs. Nelson bought 3 lots for a total cost of $23,000. If the second lot cost $2,000 more than the first, and the third lot cost $1,000 more than the second, what was the cost of each lot?

63. A house, appraised at $18,000, has been insured against fire at 90% of its total value. The annual fire insurance rate is $3.50 per $1,000, but the owner may purchase the policy for 3 years at 2-1/2 time the single-year premium. How much can the owner save by paying the 3-year premium in advance?

64. The monthly rent for an office is $210. The size of the office is 20 feet by 36 feet. What is the annual rate per square foot?

65. If a drawing 14 inches by 18 inches represents a building that is 49 feet by 63 feet, in what scale has the drawing been made?

66. Mr. Payne bought 3 parcels of land with a total acreage of 77 acres. The first parcel contains 50% of the acreage in the second parcel, and the third parcel contains 25% more acreage that the second parcel. How many acres are in the third parcel?

67. A rule of thumb says that you can afford to buy a home costing 2-1/2 times your annual income. What would be the minimum monthly salary of a worker to buy a $28,500 home using this rule?

68. Pat leased a warehouse to Joe on a percentage basis. The lease calls for a minimum monthly rental of $500 plus 4% of the gross yearly business over $60,000. How much rent would Pat receive yearly from Joe, if Joe did a gross business of $110,000?

69. Each year a salesperson’s earnings increased 205 over the previous year. If the third year’s earnings were $110,520, what were the earnings the first year?

70. If 4 trucks can haul 18 tons of dirt in 3 trips to the land fill dumping area, how many trucks would be needed to haul 45 tons of dirt in 6 trips? (Assume all trucks are the same size.)

71. Ms. Sellover’s Boutique Shop has a lease that requires that she pay 4250 minimum rent per month, plus 5% of the gross sales exceeding $75,000 per year. Ms. Sellover paid $6,500 rent last year. What were her gross sales?

72. A rectangular lot 450 feet long and 250 feet wide was subdivided into 18 lots of 50 feet by 100 feet, with a road running through the middle of the parcel. What percent of the entire parcel was reserved for road?

73. You as a salesperson earn a 7% commission of 3/4 of your sales and a 5% commission on 1/4 of your sales. If all sales were equal in value, what is the average commission rate earned?

74. If you buy a building for $20,000 and make a 20% down payment, with the balance due in quarterly installments of $275, how much will be owed a the end of 6-1/2 years?
The following answer key is believed to be accurate.
Double checking your own work is always advisable.

1 | |$4,425.44 | |26 | |Loss $389.40 | |51 | |320 Acres | |2 | |$5,660.38 | |27 | |$35,891 | |52 | |$2,800 | |3 | |Seller $200 Buyer $1,000 | |28 | |Loss $55.00 | |53 | |8,200 | |4 | |$87,912.09 | |29 | |15% | |54 | |$8,200 | |5 | |Seller $261.33 Buyer $298.67 | |30 | |Neither | |55 | |11/24-ths | |6 | |$71,578.95 | |31 | |$1,062.50 | |56 | |$15,800 | |7 | |$2,640 | |32 | |$23,333 | |57 | |Smith $2,100 Johnson $1,400 | |8 | |$815.94 | |33 | |8%; 25.5% | |58 | |40 Feet by 62 Feet | |9 | |$19,500 | |34 | |$130,000 | |59 | |1 In. = 60 Miles | |10 | |$26,505.38 | |35 | |$76,000 | |60 | |48 Trees | |11 | |7% | |36 | |$13,600 | |61 | |2.269231 | |12 | |3.50% | |37 | |11.33% | |62 | |$6,000 $8,000 $9,000 | |13 | |$18,750 | |38 | |Appraiser B | |63 | |$28.35 | |14 | |$6,600 | |39 | |$157.78 | |64 | |$3.50 Sq. Ft. | |15 | |$250,000 | |40 | |103 | |65 | |1 In = 3.5 Feet | |16 | |$1,080.00 | |41 | |$1,045 | |66 | | 1st = 14 Acres 2nd = 28 Acres 3rd = 35 Acres | |17 | |$36,600.00 | |42 | |$18,000 | |67 | |$950 per month | |18 | |6.5% | |43 | |8% | |68 | |$8,000 | |19 | |11.11% or profit $15,000 | |44 | |$191.84 | |69 | |$76,750 | |20 | |13.92% | |45 | |5.50% | |70 | |5 Trucks | |21 | |$22,000 | |46 | |$8,000 | |71 | |$145,000 | |22 | |$19,000 | |47 | |$18,200 | |72 | |22,500 Sq. Ft. | |23 | |Loss 6.00% | |48 | |3 Months | |73 | |6.50% | |24 | |2,880% | |49 | |6.50% | |74 | |$8,850 | |25 | |33.33% | |50 | |$30,000 | | | | | |