1. #1. 1. 50 x 100 = 5,000 square feet 2. 43,560 ÷ 5,000 = 8+ lots Answer: D

2. #2. A Section is 1 mile on each side and contains 640 acres ½ mile x ½ mile would be ¼ section 640 ÷ 4 = 160 acres Answer: C

3. #3 A.36 sq. mi. x 10% =3.6 square miles B.2 sections = 2 square miles C.4 square miles D.5,280 x 10,560 1 mi x 2 mi = 2 square miles Answer: C

4. #4 1. 110 x 30 = 3,300; 2. 395,340 - 3,300 = 392,040; 3. 392,040 ÷ 43,560 = 9 acres; 4. $5,250 x 9 = $47,250. Answer: D

5. #5 1. 540 square yards x 9 = 4,860 square feet 2. 4,860 ÷ 45 = 108 Answer: B

6. #6 36 miles square is 36 miles by 36 miles Since a township is 6 miles by 6 miles, this property 6 townships by 6 townships, a total of 36 townships Answer: C

7. #7 1. $162,500 x.045 = $7,312.50 2. $7,312.50 x.50 = $3,656.25 3. $3,656.25 x.50 = $1,828.13 Answer: D

8. #8 A.4,047 x 9 = 36,423 sq.ft. B.1 acre43,560 sq.ft. C.196 x 196 = 38,416 sq.ft. D.41,460 sq.ft. Answer: B

9. #9 1. $125,000 x.88 = $110,000 loan; 2. $139,750 - 110,000 = $29,750. Answer: B

10. #10 1. $3,740 – 2,431 = $1,309; 2. $1,309 ÷ $3,740 =.35 = 35% Answer: B

11. #11 Any time you reduce the loan balance, your percentage equity will increase. No calculator is needed. Answer: C

12. #12 1. $5,000 x.11 = $550 annual interest; 2. $550 ÷ 12 = $45.83 monthly interest; 3. $51.61 payment - $45.83 interest = $5.78 principal Answer: D

13. #13 1. $5,460 ÷ 5 years = $1,092 annual interest 2. $1,092 ÷.084 interest rate = $13,000 loan Answer: C

14. #14 1. $18,500 x.08 x 5 years = $7,400; 2. $20,000 x.04 = $800 (points); 3. $20,000 x.02 = $400 (prepayment penalty); 4. $7,400 + 800 + 400 = $8,600. Answer: D

15. #15 1. $26,500 x.15 = $3,975 yearly interest; 2. $3,975 x 20 years = $79,500 total interest. Answer: C

16. #16 1. $1,968 x.085 = $167. 28 x 3 years = $501.84; 2. $167.28 ÷ 12 = $13.94 x 10 months = $139.40; 3. $13.94 ÷ 30 = $0.46 x 20 days = $9.29; 4. $501.84 + 139.40 + 9.29 = $650.53. Answer: C

17. #17 1. $80,000 x.2125 = $17,000 down payment; 2. $80,000 - 17,000 = $63,000 loan; 3. $63,000 x.1025 = $6,457.50 annual interest; 4. $6,457.50 ÷ 12 = $538.13 monthly interest; 5. $800 ÷ 12 = $66.67 monthly taxes; 6. $978 ÷ 36 months = $27.17 monthly insurance; 7. $538.13 + 66.67 + 27.17 + 119.00 = $750.97. Answer: B

18. #18 1. $5,000 x 12 = $60,000 - 12,000 = $48,000 Net; 2. $48,000 ÷.12 = $400,000 Property Value; 3. $400,000 - 300,000 Bldg. = $100,000 Land. Answer: B

19. #19 1. $1,000 x 3 Months = $3,000; 2. $3,000 ÷ 5 years = $600 vacancy per year; 3. $1,000 x 12 = $12,000 Scheduled Gross Income; 4. $12,000 - 600 - 3,000 (expenses) = $8,400 Net; 5. $8,400 ÷.10 = $84,000 value. Answer: C

20. #20 $174,000 ÷.08 = $2,175,000 Value. Answer: C

21. #21 1. $400 x 12 = $4,800 annual income loss; 2. $4,800 ÷.12 = $40,000. Answer: C

22. #22 1. $91,740.00 + $1,291.80 = $93,031.80 to seller; 2. $93,031.80 = 94% of sales price; 3. $93,031.80 ÷.94 = $98,970. Answer: D

23. #23 1. $72,000 x 2 = $144,000 new value; 2. $144,000 - 52,000 = $92,000 new equity; 3. $92,000 ÷ 20,000 = $4.60. Answer: B

24. 24. 1. $30,000 x.07 = $2,100; 2. $30,000 x.05 = $1,500 x 4 = $6,000; 3. $30,000 x.03 = $900 x 14 = $12,600; 4. $2,100 + 6,000 + 12,600 = $20,700. Answer: C

25. 25. 1. 100% - 3.5% = 96.5%; 2. $34,790 = 96.5% of loan; 3. $34,790 ÷.965 = $36,051.81. Answer: C

26. #26 1. $18,000 x 2 = $36,000 invested; 2. $15,000 x 3 = $45,000 sale price; 3. $45,000 - 36,000 = $9,000 profit; 4. $9,000 ÷ 36,000 = 0.25 = 25% profit. Answer: C

27. #27 1. $9,300 ÷ 3 = $3,100 markup; 2. $9,300 + 3,100 = $12,400 gross sales price; 3. $12,400 x.15 = $1,860 bad debts; 4. $12,400 - 1,860 = $10,540 net sales price; 5. $10,540 - 9,300 = $1,240 profit. Answer: B

28. #28 1. 21,780 ÷ 140 = 155.57 front feet; 2. $17,424 x.40 = $6,969.60; 3. $17,424 + 6,969.60 = $24,393.60 net; 4. $24,393.60 = 90% of sales price; 5. $24,393.60 ÷.90 = $27,104; 6. $27,104 ÷ 155.57 = $174.22. Answer: B

29. #29 1. Pick an easy listing price, such as $100; 2. $100 listed price, purchase price would be $80; 3. $100 - 80 = $20 profit; 4. $20 ÷ 80 = 0.25 = 25% profit. Answer: C

30. #30 Draw a picture: 1. 150 - 20 - 4 = 126 2. 50 - 4 - 4 = 42 3. 126 x 42 = 5,292 Answer: A

31. #31 A full township would contain 36 square miles, so ½ of a township would contain 18 square miles. Answer: C

32. #32 1. 110 yards x 3 = 330 feet; 220 yards x 3 = 660 feet; 2. 330 x 660 = 217,800 square feet; 3. 217,800 ÷ 43,560 = 5 acres Answer: B

33. #33 1. $265,000 x 4 = $1,060,000 annual income; 2. $1,060,000 x.32 = $339,200 expenses; 3. $1,060,000 - 339,200 = $720,800 net income. Answer: B

34. #34 1. $8,100 = 45% of commission; 2. $8,100 ÷.45 = $18,000 commission; 3. $18,000 = 6% of selling price; 4. $18,000 ÷.06 = $300,000 selling price. Answer: C

35. #35 1. 43,560 ÷ 4 = 10,890 square feet; 2. 10,890 ÷ 240 = 45.375 width. Answer: D

36. #36 1. 100% - 12% = 88%; 2. $63,360 = 88% of selling price; 3. $63,360 ÷.88 = $72,000; 4. $72,000 - $63,360 = $8,640. Answer: D

37. #37 1. $150 ÷ 8 = $18.75 monthly interest; 2. $18.75 x 12 = $225 annual interest; 3. $225 ÷ $2,500 =.09 = 9%. Answer: B

38. #38 1. $7,000 x.09 = $630 annual interest; 2. $945 ÷ $630 = 1.5 years = 18 months. Answer: B

39. #39 $72,000 ÷.12 = $600,000. Answer: B

40. #40 1. $30,000 ÷.05 = $600,000; 2. $30,000 ÷.06 = $500,000; 3. $600,000 - 500,000 = $100,000. Answer: B

41. #41 1. $75,000 Appraisal x.80 = $60,000 Loan; 2. $60,000 + 1,200 deposit = $61,200 credits; 3. $77,000 price x.03 = $2,310 closing costs; 4. $77,000 + 2,310 costs = $79,310 charges; 5. $79,310 - 61,200 = $18,110 balance due. Answer: C

42. #42 No calculator is needed for this question! 1. Since no prepayment penalty was listed, Choices A and C are eliminated. 2. Since the 2 nd TD has an alienation clause, it is not assumable, so Choice D is eliminated. 3. Only Choice B remains. Even at a 0% interest rate, the loan would not be fully repaid after 60 payments of 1%, so there would be a balloon payment Answer: B

43. End of session