Studentís Name:__________________________
California Real Estate Principles by Walt Huber
Quiz 15

1. If you sell your home for $350,000, which represents a 40% profit, what was the amount of your profit?

A. $70,000                       C. $250,000
B. $100,000                       D. none of the above

2. If a $52,500 loan was made on a property, and this was equivalent to 70% of the appraisal value, what was the amount of the appraisal value?

A. $90,000                       C. $50,000
B. $80,000                      D. $75,000

3. If a man buys two lots for $18,000 each, and then creates three lots from the two he purchased and sells them for $15,000 each; what is his percentage of profit?

A. 15%                          C. 25%
B. 20%                           D. 30%

4. If a note for $3,740 is sold at a discount for $2,431, the rate of discount from the face amount is?

A. 25%                         C. 45%
B. 35%                          D. none of the above

5. How much is a 7% commission on a $120,000 sale?

A. $5,833                       C. $8,400
B. $7,350                        D. $17,142

6. The process of proportionately dividing expenses or income to a precise date is?

A. Depreciation                     C. Allotment
B. Proration                             D. All of the above

7. P x R x T = ?

A. Area                     C. Rate
B. Interest                 D. None of the above

8. Annual straight-line depreciation is determined by:

A. dividing total cost by years                C. dividing improvement cost by years
B. dividing land cost by years                 D. any of the above

9. If escrow closes on the 21st day of a month, how much would an escrow company give of the $900 rent paid on the first of the month to the buyer?

A. $300                          C. $600
B. $450                          D. $900

10. What is the annual net income, if expenses are 32% and the quarterly income is $265,000?

A. $180,200                          C. $720,800
B. $349,800                         D. None of the above

11. What is the percentage of profit a person gains if he or she purchases a property for 20% less than the listed price and then sells it for the original listed price?

A. 15%                          C. 25%
B. 22%                         D. 30%

12. If we use 27.5 years for straight-line depreciation on residential properties, what is the annual depreciation on an apartment that cost $825,000 with land cost of $550,000?

A. $10,000                    C. $30,000
B. $20,000                      D. $50,000

13. The assessed value of a piece of property is $308,700. The tax rate is $1.02 per $100 of assessed valuation. The tax is:

A. $3,496.74                       C. $3,148.74
B. $3,087.00                     D. none of the above

14. How much would have to be invested at 7% in order to provide an investor with $840 monthly income?

A. $ 12,000                         C. $170,560
B. $144,000                       D. None of the above

15. There are how many square feet in 81 square yards?

A. 9 x 9 x 9                     C. 729
B. 81 x 9                          D. Either A or B

16. Two brokers sold a home for $162,000 and split 50/50 the 4.5% commission. How much would the salesperson receive if she had a 50% split with her broker?

A. $1,012.50                     C. $2,025.00
B. $1,822.50                      D. $7,290.00

17. If you borrowed $2,500 at 9% for 3 years, ten months and 20 days, the total amount of interest would be closest to:

A. $187.50                     C. $675.00
B. $225.00                      D. $875.00

18. If you take back a note of $4,200 secured by a trust deed and sold it quickly for $2,730, it would represent a loss of what percent?

A. 17%                       C. 35%
B. 26%                         D. 54%

19. If a property manager rents space in a strip shopping center for $8.50 a square foot per year, what is the monthly rent if a tenant rents an area 60 feet by 90 feet and 75 feet by 115 feet?

A. $ 6,109                      C. $73,312
B. $ 9,934                        D. $119,212

20. If the 3% liquidating damages clause in a deposit receipt is initialed and a $30,000 deposit is given towards a purchase price of $195,000, in a breach the seller could retain what amount?

A. $5,850                         C. $24,150
B. $900                             D. $30,000

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