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Questions and Answers
A real estate agent sells a property for $500,000 and earns a commission rate of 3%. How much commission does the agent earn?
A real estate agent sells a property for $500,000 and earns a commission rate of 3%. How much commission does the agent earn?
- $1,500
- $150,000
- $15,000 (correct)
- $515,000
If a buyer secures a loan of $200,000 and pays 2 points in closing costs, what is the dollar amount of the closing costs?
If a buyer secures a loan of $200,000 and pays 2 points in closing costs, what is the dollar amount of the closing costs?
- $2,000
- $200
- $400
- $4,000 (correct)
A property is assessed at $300,000 and the tax rate is 1.2%. What are the annual taxes?
A property is assessed at $300,000 and the tax rate is 1.2%. What are the annual taxes?
- $3,600 (correct)
- $250,000
- $36,000
- $250
A rectangular lot measures 100 feet in length and 50 feet in width. What is the area of the lot?
A rectangular lot measures 100 feet in length and 50 feet in width. What is the area of the lot?
What is the area of a lot that measures one square mile?
What is the area of a lot that measures one square mile?
A property appreciates at a rate of 5% each year. If the initial value of the property (PV) is $200,000, which formula correctly calculates the future value (FV) of the property after 3 years?
A property appreciates at a rate of 5% each year. If the initial value of the property (PV) is $200,000, which formula correctly calculates the future value (FV) of the property after 3 years?
A property is currently valued at $350,000. If it depreciates at a rate of 2% per year, what will be its approximate value after 2 years?
A property is currently valued at $350,000. If it depreciates at a rate of 2% per year, what will be its approximate value after 2 years?
To find the perimeter of an irregularly shaped lot, what is the correct method?
To find the perimeter of an irregularly shaped lot, what is the correct method?
An investor wants to purchase 5 acres of land. How many square feet is this equivalent to?
An investor wants to purchase 5 acres of land. How many square feet is this equivalent to?
How would you calculate the area of an irregular lot?
How would you calculate the area of an irregular lot?
Flashcards
How to calculate Commission Earned?
How to calculate Commission Earned?
Final Sales Price multiplied by the Commission Rate.
How to calculate Amount Owed (Interest)?
How to calculate Amount Owed (Interest)?
Principal Balance multiplied by the Annual Interest Rate.
How to calculate Appreciation?
How to calculate Appreciation?
Property Value multiplied by the percentage increase each year.
How to calculate Closing Costs?
How to calculate Closing Costs?
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How to calculate the area of an irregular lot?
How to calculate the area of an irregular lot?
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How to calculate the perimeter of a lot or shape?
How to calculate the perimeter of a lot or shape?
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How to calculate Annual Taxes?
How to calculate Annual Taxes?
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How to calculate the Area of a Lot?
How to calculate the Area of a Lot?
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What is the area of 1 Acre?
What is the area of 1 Acre?
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What is the area of 1 Square Mile?
What is the area of 1 Square Mile?
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Study Notes
Calculating Commissions
- Commission Earned = Final Sales Price x Commission Rate
Calculating Interests
- Amount Owed = Principal Balance x Annual Interest Rate
Calculating Appreciation
- Property Value = Property Value x % increase each year
- FV = PV x (1+a)^n
- FV is future value
- PV is present value
- a is appreciation rate
- n is number of years
Calculating Depreciation
- Property Value (Year 3) = Property Value x % decrease each year
- FV = PV x (1-d)^n
- FV is future value
- PV is present value
- d is depreciation rate
- n is number of years
Closing Cost Calculation
- Closing Costs = Loan Amount x points %
Calculating the area of an irregular lot
- Break the shape down into squares, rectangles, and triangles
- Calculate the areas of each shape
- Sum all of the areas together
Calculating Perimeter
- Simply add up the lengths
Annual Taxes Calculation
- Annual Taxes = Assessed Value x Tax Rate
Calculating Area of Lot
- Area of Lot = Length x Width
Key Conversions to Memorize
- 1 Acre = 43,560 sq feet
- 1 Square Mile = 640 Acres
- 1 Hectare = 10,000 sq meters = 2.47 Acres
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Description
Understand key real estate formulas. This covers calculating commissions, interests, appreciation, depreciation, closing costs and property tax. Also included are area and perimeter calculations.
