ANSWERS TO MATH QUESTIONS WITH BRIEF EXPLANATIONS
Question 1 – B
One of my favorite questions. If Sue sells the Bayside listing (her company), for $240,000, the selling company gets 3.5% or $8400. Sue would get 55% of that or $4620. If she sells the Seashell listing for $320,000, the selling company gets 3% or $9600. She gets 52% of that or $4992. 4992 minus 4620 is a difference of $372.
Question 2 – C
54 acres times 43,560 square feet per acre is 2,352,240 square feet, minus 535,000 square feet leaves 1,817,240 to be built on. One-quarter acre is 10,890 square feet (43,560 ÷ 4). 1,817,240 ÷ 10,890 = 166.87 lots. You can NOT round up to the next number, because zoning requires the full lot, so the builder can build 166 houses.
Question 3 – A
You need to know the value of the REMAINING YEARS. Divide the replacement cost of 140,000 by 50 to get a value of $2800 per year. Multiply that by 15 (the remaining years in the building’s useful or economic life) to get $42,000.
Question 4 – B
The actual or market value of $134,000 times the 40% assessment gives you an assessed value of $53,600. Since the rate is in dollars per hundred, you must divide the assessed value by 100 which gives you 536, times the rate of $3.50 gives you the yearly tax of $1876.
Question 5 – A
SIX INCHES IS ONE-HALF OF A FOOT OR .5 (Not .6). Three inches is .25, not .3. 18.5 X 14 = 259 square feet. 10 X 12.25 = 122.5 square feet. 259 + 122.5 = 381.5 SQUARE FEET. The carpeting is sold in SQUARE YARDS. There are 3 feet in a yard, but 9 SQUARE FEET in a SQUARE YARD (3 ft. X 3 ft. = 9 square feet). 381.5 ÷ 9 = 42.3888 square yards, times 18 dollars per square yard equals $763 (rounded up). And yes you can run into questions on your state exam that have “none of the above” as the correct answer, just not on this question here.
Question 6 – C
You are not adding and subtracting the same 10%. Don’t even try it! If Andrew paid 10% of the sale price, that means he kept 90%. If we knew the sale price, we could multiply by 90% to get Andrew’s share. If we want to start at Andrew’s share and go back to the sale price, we have to do the opposite, and divide 118,800 by 90%, which gives us $132,000 as the price he just sold it for. The house sold for 10% more than the original price, or 110%. If we knew the original price, we could multiply by 110% to get the new amount. Since we are going backwards again, we have to do the opposite, or divide by 110%. 132,000 ÷ 110% = 120,000.