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 MATH PRACTICE #3   1. A buyer pays \$100,000 for a property and gets an 80% loan with 3 points.     How much is the buyer charged at closing for the points? 2. A building sold for \$100,000. The buyer deposited \$8,000 of earnest     money with the listing broker. The buyer received a 90% loan and the     lender charged 2 discount points. What is the total amount of cash used     by the Buyer? 3. A buyer paid \$150,000 for a house and received an 80% loan with 3     points. He gave the selling agent an earnest money check in the amount     of \$5,000. How much money does the buyer need to bring to closing? 4. A building is valued at \$150,000 and has 3 apartments that rent for \$400     each. The NOI is 60% of gross rents. What is the capitalization rate? 5. A building has a NOI of \$1,200 per month. If the capitalization rate is 9%,     what is the value of the property using the income approach? 6. A loan of \$20,000 at 9% would have quarterly interest payments of what     amount? 7. Last months payment included interest of \$520 on an \$82,000 loan     balance What is the annual rate of interest? 8. On a 25 year loan, the yield is 11%. The lender charged 5 points.      What is the interest rate? 9. If the interest rate on a 30 year loan is 12% and the monthly payment is      \$950, the principal amount of the loan would be how much? 10. If the semi-annual interest on an 8% loan is \$6,200, the principal amount       of the loan is what amount?

 MATH PRACTICE #3  ANSWERS 1. A buyer pays \$100,000 for a property and gets an 80% loan with 3 points.     How much is the buyer charged at closing for the points?     100,000 X .8 = 80,000 X .03 = \$2,400 2. A building sold for \$100,000. The buyer deposited \$8,000 of earnest     money with the listing broker. The buyer received a 90% loan and the     lender charged 2 discount points What is the total amount of cash used     by the Buyer?      100,000 X .9 = 90,000 X .02 = \$1,800 PTS + \$10,000 (10%) = \$11,800 TOTAL 3. A buyer paid \$150,000 for a house and received an 80% loan with 3      points. He gave the selling agent an earnest money check in the amount     of \$5,000. How much money does the buyer need to bring to closing?     150,000 X .8 = 120,000 X .03 = \$3,600 PTS + \$30,000 (20%) = \$33,600 TOTAL      - \$5,000 = \$28,600 LEFT TO BRING 4. A building is valued at \$150,000 and has 3 apartments that rent for \$400     each. The NOI is 60% of gross rents. What is the capitalization rate?     400 X 3 = \$1,200 / MONTH X 12 = \$14,400 / YEAR INCOME X .6 =      \$8,640 / 150,000 = .058 5. A building has a NOI of \$1,200 per month. If the capitalization rate is 9%,      what is the value of the property using the income approach?     1,200 X 12 = 14,400 / .09 = \$160,000 6. A loan of \$20,000 at 9% would have quarterly interest payments of what     amount?     20,000 X .09 = 1800 / YEAR INT / 4 = \$450 7. Last months payment included interest of \$520 on an \$82,000 loan     balance. What is the annual rate of interest?     520 X 12 = \$6,240 / 82,000 = .076 OR 7.6% 8. On a 25 year loan, the yield is 11%. The lender charged 5 points. What is      the interest rate?      5/8 11 - 5/8 = 10 3/8 9. If the interest rate on a 30 year loan is 12% and the monthly payment is     \$950, the principal amount of the loan would be how much?     950 X 12 = 11,400 / YR / .12 = \$95,000 10. If the semi-annual interest on an 8% loan is \$6,200, the principal amount       of the loan is what amount?       6,200 X 2 = 12,400 / YR 12,400 / .08 = \$155,000
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