Colorado Real Estate Math |70 Questions| With Correct Answers.

A loan company will provide a loan to Bill and Hillary for 75% of the appraised value of their home. The interest rate is 10.5%. The first monthly interest payment is $820. The bank requires 4 discount points (hint: a discount point is 1% of the loan amount) to obtain this interest rate. How much will the discount points cost? 2840 3749 5575 9714 {Ans: 3749 $820 x 12 = $9,840 annual interest paid. $9,840 / .105 (annual interest converted to a decimal) = $93,714.28 Total Loan Amount. $93,714 x .04 (A discount point is 1% of the loan amount - you have 4 of them) = $3.749.57 in Discount Points}The listing and selling broker will split the commission of 6.5% the selling broker received $2,593.50 as her share. What was the sales price of the property? 39900 56200 79800 89100 {Ans: 79800 Take $2, 593.50 X 2 = $5,187 and divide that by .065 = $79,800}An apartment has an annual income of $53,500. If you must have a 14% rate of return, what is the maximum you can pay for the apartment building? 382143 415674 489542 563821 {Ans: 382143 $53,500 / .14 = $382,143}If the interest