MATH 1280 FINAL EXAM LATEST 2024 ACTUAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS
If a home that originally cost $142,500 three years ago is now valued at 127% of its
original cost, what is the current market value?
164025
172205
174310
180975 - ANSWER: 180975
$142,500 x 127% = $180,975
In order for the seller to sell his property, he must replace the carpet in the living
room. What would it cost to put new carpet in the room measuring 15 feet by 20
feet if the carpet costs $26.95 per square yard, plus $450 installation charge?
2322
1348
3109
2335 - ANSWER: 1348
There are 9 square feet in a square yard, it's because 1 yard is 3 feet and in a square
all sides are equal in length, which makes 1 sq. yard equals to 3 * 3 = 9 square feet.
So,the calculation for this questions is 15 sq ft x 20 sq ft = 300 sq.ft. 300sq ft / 9
( here it is - a square yard is 3 yards by 3 yards or 9 square feet) = 33.33 sq yds x
$26.95 = $898.33 + $450 = $1348.33
A parcel of land described as "the NW 1/4 and the SW 1/4 of Section 6, T4N, R8W of
the Third Principal Meridian" was sold for $875 per acre. The listing broker will
receive a 5% commission on the total sales price. How much will the broker receive?
1750
5040
14000
15040 - ANSWER: 14000
First let's figure out how many acres: ¼ of a section is 160 acres, so 160 acres + 160
acres = 320 acres. If it sold for $875 then it is 320 x $875 = $280,000. The listing
broker will receive a 5% commission, so $280,000 x 5% = $14,000 commission to the
listing agent.
Purchase price is $180,000 and buyer has a 90% loan at 7%; if the closing is July 7
how will the interest be shown on the settlement sheet?
,$186.41 debit to the buyer, credit to the broker
$776.71 debit to the buyer, credit to the broker
$776.71 debit to the buyer, credit to the seller
$186.41 debit to the buyer, credit to the seller - ANSWER: $776.71 debit to the
buyer, credit to the broker
$180,000 X 90% = $162,000 X 7% = $11, = $31.0685 X 25 = $776.71
Prorate an annual insurance premium for an assumed loan, which was paid in
advance on Jan 1 by the sellers. Closing is Oct 5 and the policy amount was $985.
Since the buyer is benefiting from the Seller paying the year in advance, the buyer
owes money to the seller. How much?
237.48
747.52
757.9
227.1 - ANSWER: 237.48
Cost of the annual insurance $985 divided by 365 days = $2.6986 the cost of
insurance per day X 88 days remaining on the policy which was paid on Jan 1 =
$237.48 which would be a debit to the buyer and a credit to the seller.
The real estate taxes for last year were $3,685 what would the settlement statement
show if the closing were September 19?
$2645.12 debit seller, credit buyer
$2635.02 debit seller, credit buyer
$1039.88 debit seller, credit buyer
$1029.78 debit seller, credit buyer - ANSWER: $2635.02 debit seller, credit buyer
$3, = $10.0959 per day X 261 days of seller ownership (Jan1 -Sept 18, Buyer
has day of closing) = $2,635.02 debit seller, credit buyer (buyer is going to recieve
annual property tax bill on Jan 1)
How many 50-foot by 110-foot lots could be obtained from an acre of land?
6
7
8
9 - ANSWER: 7
This question involves calculating square footage. Whenever you do math questions
like this you need to get all the factors converted to a common measure. You've got
, two measures here - one is "50-foot by 110-foot" and the other is "acre". In order to
calculate how many of one (the lots) can be carved out of the other (the acre), you
need to convert them to the common measure of square feet.
Multiply 50 x 110 to get the square footage of one lot or 5500 square feet. The acre
is a little trickier; you have to just know the total square feet (for us and the state
test). It is 43560. Divide 5500 into 43560 and you get 7.920 lots. The question wants
to know how many 50 x 100 foot lots you can get of an acre - the answer is 7.
The .920 is not a full lot.
A house is closed on May 15. HOA dues are $108 per month and are due and payable
on the first day of each month. The HOA dues will appear on the closing statement
as a:
$49 debit to the seller
$59 debit to the seller
$59 credit to the seller
$49 credit to seller - ANSWER: $59 credit to the seller
The seller paid the HOA dues on May first for the entire month. With a closing on
May 15 ( remember the Buyer is responsible for the day of Closing), this means the
Seller paid 17 days (May 15-31) too much. Since the Buyer is receiving the advantage
of the overpaid HOA dues, the Buyer owes this money to the Seller. $ days =
$3.4839 per day. $3.4839 x 17 days = $59.23 to be credited to the seller and debited
to the buyer.
Real property is closing on May 15. The buyer is assuming the seller's mortgage. As
of closing the balance is $65,325. The annual interest rate is 8%. How should the
interest on the loan be prorated based on a banker's year (360 days in a year, all
months have 30 days)
Debit the buyer $232.32
Debit the seller $232.32
Debit the buyer $203.23
Debit the seller $203.23 - ANSWER: Debit the seller $203.23
Debit the seller $203.23 $65,325 x 8% / 360 days = $14.5167 x 14 days = $203.23
The seller is debited because this is an assumption, which means the buyer is taking
over payments. Since the closing is mid-month the buyer and seller need to split the
payment for that month. Remember that mortgage interest is paid in arrears. This
means the June 1 payment is for the month of May. That is the month they have to
QUESTIONS AND CORRECT DETAILED ANSWERS
If a home that originally cost $142,500 three years ago is now valued at 127% of its
original cost, what is the current market value?
164025
172205
174310
180975 - ANSWER: 180975
$142,500 x 127% = $180,975
In order for the seller to sell his property, he must replace the carpet in the living
room. What would it cost to put new carpet in the room measuring 15 feet by 20
feet if the carpet costs $26.95 per square yard, plus $450 installation charge?
2322
1348
3109
2335 - ANSWER: 1348
There are 9 square feet in a square yard, it's because 1 yard is 3 feet and in a square
all sides are equal in length, which makes 1 sq. yard equals to 3 * 3 = 9 square feet.
So,the calculation for this questions is 15 sq ft x 20 sq ft = 300 sq.ft. 300sq ft / 9
( here it is - a square yard is 3 yards by 3 yards or 9 square feet) = 33.33 sq yds x
$26.95 = $898.33 + $450 = $1348.33
A parcel of land described as "the NW 1/4 and the SW 1/4 of Section 6, T4N, R8W of
the Third Principal Meridian" was sold for $875 per acre. The listing broker will
receive a 5% commission on the total sales price. How much will the broker receive?
1750
5040
14000
15040 - ANSWER: 14000
First let's figure out how many acres: ¼ of a section is 160 acres, so 160 acres + 160
acres = 320 acres. If it sold for $875 then it is 320 x $875 = $280,000. The listing
broker will receive a 5% commission, so $280,000 x 5% = $14,000 commission to the
listing agent.
Purchase price is $180,000 and buyer has a 90% loan at 7%; if the closing is July 7
how will the interest be shown on the settlement sheet?
,$186.41 debit to the buyer, credit to the broker
$776.71 debit to the buyer, credit to the broker
$776.71 debit to the buyer, credit to the seller
$186.41 debit to the buyer, credit to the seller - ANSWER: $776.71 debit to the
buyer, credit to the broker
$180,000 X 90% = $162,000 X 7% = $11, = $31.0685 X 25 = $776.71
Prorate an annual insurance premium for an assumed loan, which was paid in
advance on Jan 1 by the sellers. Closing is Oct 5 and the policy amount was $985.
Since the buyer is benefiting from the Seller paying the year in advance, the buyer
owes money to the seller. How much?
237.48
747.52
757.9
227.1 - ANSWER: 237.48
Cost of the annual insurance $985 divided by 365 days = $2.6986 the cost of
insurance per day X 88 days remaining on the policy which was paid on Jan 1 =
$237.48 which would be a debit to the buyer and a credit to the seller.
The real estate taxes for last year were $3,685 what would the settlement statement
show if the closing were September 19?
$2645.12 debit seller, credit buyer
$2635.02 debit seller, credit buyer
$1039.88 debit seller, credit buyer
$1029.78 debit seller, credit buyer - ANSWER: $2635.02 debit seller, credit buyer
$3, = $10.0959 per day X 261 days of seller ownership (Jan1 -Sept 18, Buyer
has day of closing) = $2,635.02 debit seller, credit buyer (buyer is going to recieve
annual property tax bill on Jan 1)
How many 50-foot by 110-foot lots could be obtained from an acre of land?
6
7
8
9 - ANSWER: 7
This question involves calculating square footage. Whenever you do math questions
like this you need to get all the factors converted to a common measure. You've got
, two measures here - one is "50-foot by 110-foot" and the other is "acre". In order to
calculate how many of one (the lots) can be carved out of the other (the acre), you
need to convert them to the common measure of square feet.
Multiply 50 x 110 to get the square footage of one lot or 5500 square feet. The acre
is a little trickier; you have to just know the total square feet (for us and the state
test). It is 43560. Divide 5500 into 43560 and you get 7.920 lots. The question wants
to know how many 50 x 100 foot lots you can get of an acre - the answer is 7.
The .920 is not a full lot.
A house is closed on May 15. HOA dues are $108 per month and are due and payable
on the first day of each month. The HOA dues will appear on the closing statement
as a:
$49 debit to the seller
$59 debit to the seller
$59 credit to the seller
$49 credit to seller - ANSWER: $59 credit to the seller
The seller paid the HOA dues on May first for the entire month. With a closing on
May 15 ( remember the Buyer is responsible for the day of Closing), this means the
Seller paid 17 days (May 15-31) too much. Since the Buyer is receiving the advantage
of the overpaid HOA dues, the Buyer owes this money to the Seller. $ days =
$3.4839 per day. $3.4839 x 17 days = $59.23 to be credited to the seller and debited
to the buyer.
Real property is closing on May 15. The buyer is assuming the seller's mortgage. As
of closing the balance is $65,325. The annual interest rate is 8%. How should the
interest on the loan be prorated based on a banker's year (360 days in a year, all
months have 30 days)
Debit the buyer $232.32
Debit the seller $232.32
Debit the buyer $203.23
Debit the seller $203.23 - ANSWER: Debit the seller $203.23
Debit the seller $203.23 $65,325 x 8% / 360 days = $14.5167 x 14 days = $203.23
The seller is debited because this is an assumption, which means the buyer is taking
over payments. Since the closing is mid-month the buyer and seller need to split the
payment for that month. Remember that mortgage interest is paid in arrears. This
means the June 1 payment is for the month of May. That is the month they have to
