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QUESTION NUMBER.
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If you
knew the original purchase price, you could multiply that times 22%, and
subtract that amount from the purchase price, OR you could look at the FULL
original purchase price as being 100% of that amount, of which you lost 22%
when you resold it. You now have
78% of the original amount, so you could multiply the original price by 78% and
get the new amount, which is $88,000.
If you are STARTING at the 88,000, you have to do the OPPOSITE to get
back to the original amount, meaning you need to DIVIDE by 78%, which will give
you $112,820.51 (c).
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So
you’re asking, “What does this have to do with real estate?” Well, where do you think the wood is
located? Anyway, this is
cross-multiplying with a twist (the time period is different). Twenty cords in two days would be ten
in one day. Then 
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QUESTION 3
If you did this in the order that things really happen, you would start at the sale price. The commission gets paid first (that’s the way it should be); THEN you subtract the closing costs and the mortgage, which will net the seller $70,000. Also, the commission percentage will tell us what the BROKER is getting (10% of the sale price). That means the seller is getting 90% of the sale price before the other things are taken out (100% - 10% = 90%). In a formula it would appear as the following:
(We’ll call the sale price “SP”) SP x 90% - 4000 – 93,000 = 70,000. When you go in reverse, you have to keep the same order and numbers, but do the opposite function. The LAST thing we did was SUBTRACT 93,000 to get 70,000, so in reverse we need to start at 70,000, and ADD the 93,000 back in FIRST. The full formula would be:
70,000 + 93,000 + 4000 divided by 90% = SP (Which is $185,555.55). Go back to quiz Go to Explanations
QUESTION 4
This
must be worked backwards. It may
be easiest to put it in order first. First, if the selling broker gets 40%,
that means the listing broker gets 60% (100% - 40%). Then going forward, SP x 8% x 60% x 52% = $2300. Going forward we multiplied at every
step along the way and ended at 2300.
Going backwards we’ll start at 2300 and work our way back to the sale
price. When we go backwards we
have to do everything the opposite, so we will divide at every step. 2300 divided by the salesperson’s 52%
will give us the broker’s commission of
$4,423.08. 4423.08 divided
by 60% will give us the total commission of $7,371.79. 7371.79 divided by 8% will give us the
sale price of $92,147.43 (or .44 depending on your calculator).
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QUESTION 5
Work
this out. You are NOT taking the
same 10%. 140,000 x 10% = 14,000;
140,000 + 14,000 = 154,000 (or you could just have done 140,000 x 110%);
154,000 x 10% = 15,400 (see, it’s a different number); 154,000 – 15,400 = 138,600
(or you could have just done 154,000 x 90%).
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If you
lost 14%, that means you have only 86% of what you originally had (100% - 14% =
86%). IF you knew the original
amount, you could multiply by 86% and get $98,000. Since you are going backwards, you would do the opposite
(the 14% is of your original amount, NOT the 98,000 dollars). So, $98,000 divided by 86% will give
you $113,953.48.
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This is
a trapezoid. 140 + 380 divided by
2 = 260; 260 x 190 = 49,400; 49,400 x $3.50 = $172,900; 172,900 x 8% =
$13,832. If the selling broker
gets 45%, then the listing broker gets 55%. 13,832 x 55% = $7607.60
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QUESTION 8
Using the factor chart, 30 years at 7.75% gives us a factor of 7.16. Since it is a $119,500 loan, we would divide that by a thousand and multiply the factor by 119.5. 7.16 x 119.5 = $855.62, which would be our monthly payment for principal and interest on the 30 year loan. 15 years at 7.5% would give us a factor of 9.27. 9.27 x 119.5 = 1107.77, which would be our monthly payment on the thirty-year loan. 1107.77 – 855.62 = 252.15, which would be the difference in our payments.
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QUESTION 9
Again using the factor chart, 20 years at 8% gives us a factor of 8.37. The 750 dollar payment divided by the factor of 8.37 will give us 89.605734 (Do NOT round off until the end). 89.605734 x 1000 gives us a loan amount of $89,605.73 (Now we have to round off). THEN ADD the $12,000 dollar downpayment to the loan amount to get the total purchase price of $101,605.73, which is not up there (Mmm, must be none of the above). Go back to quiz Go to Explanations
$180,000
x 40% gives us an assessed value of $72,000. Since the rate is in dollars per hundred, we have to divide
that by 100, to get 720. 720 times
the rate of $2.80 gives us a tax of $2016.
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QUESTION 11
The loan is 90% of the sale price, so $124,900 x 90% = $112,410. One point is 1% of the LOAN amount or $1124.10, so 3 points would be $3372.30. . The commission is based on the sale price, so $124,900 x 8% = $9992. 3372.30 + 9992 + 2100 = 15,464.30, which would be our total closing costs. Go back to quiz Go to Explanations
QUESTION 12
Interest rates are based on 1 year, so we first need to multiply our monthly interest by 12 to get 1 year’s worth of interest, or $5040. 5040 divided by our rate of 8% will give us our loan amount of $63,000.
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QUESTION 13
$90,000 x 45% = $40,500 assessed value. The tax of $1400 divided by the $40,500 assessed value gives us a rate of .03457 or 34.57 mills. Go back to quiz Go to Explanations
QUESTION 14
300 x 5280 = 1,584,000. 1,584,000 divided by 43,560 is 36.36 acres.
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QUESTION 15
This is cross-multiplying again. It’s easiest to keep this in minutes.
81
and 2/3 minutes is 1 hour, 21 minutes and 40 seconds.
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Douglas R. Barry