Notes Flashcards
(78 cards)
1
Q
In a fraction, the ___ shows the full number of equal parts
A
Denominator
2
Q
In a fraction, the ___ is the bottom number
A
Denominator
3
Q
In a fraction, the ___ shows how many of those equal parts are identified
A
Numerator
4
Q
In a fraction, the ___ is the top number
A
numerator
5
Q
What is the numerator in this fraction: 7/8
A
7
6
Q
What is the denominator in this fraction: 7/8?
A
8
7
Q
How do you convert a fraction into a decimal?
A
numerator divided by denominator
8
Q
Convert 7/8 to a decimal
A
0.875
7 divided by 8 = 0.875
9
Q
Total times rate = ___
A
Part
10
Q
___ x ___ = part
A
Total x rate
11
Q
Part divided by rate = ___
A
Total
12
Q
___ divided by ___ = total
A
Part divided by rate
13
Q
Part divided by total = ___
A
Rate
14
Q
___ divided by ___ = rate
A
part divided by total
15
Q
When PART is unknown, ___.
A
Multiply
16
Q
When part is know, ___
A
divide
17
Q
When dividing, always enter the ___ into the calculator first.
A
Part
18
Q
A house and lot are priced at $235,000. The lot alone is valued at $54,000. The lot’s value is what percent of the total value?
A
23%
PART DIVIDED BY TOTAL = RATE
54,000 divided by 235,000 = 0.229
0.229 x 100 = 22.9%
Rounded = 23%
19
Q
A broker charges 5.5% commission. What is her commission on the sale of a property for $190,000?
A
$10,450
TOTAL x RATE = PART
190,000 x 5.5% (0.055) = 10,450
20
Q
The sum of the length of all of a parcel’s sides
A
Perimeter
21
Q
The area within the perimeter is ___ or ____.
A
Floor or ground space
22
Q
Floor or ground space is usually expressed in ___ or ___.
A
Square units or acres
23
Q
The term ___ refers to a lot’s frontage
A
Per front
24
Q
The length of a property along a street or waterfront
A
Frontage
25
If 2 unlabeled dimensions are given for a parcel of land, the first dimension is the ___
frontage
26
Irregularly shaped property can easily be measured by a non-surveyor ONLY if its dimensions can be translated into...
rectangles and triangles
27
length x width = ___
area
28
area = ___ x ___
length x width
29
when 2 dimensions are given, assume the shape to be a(n) ___ unless told otherwise.
rectangle
30
How many feet in a yard?
3
31
How many square feet are in a room 15'6 by 30'9? Inches must be converted to feet.
476.625 square feet
6" divided by 12 = 0.5'
0.5' + 15' = 15.5' wide
9" divided by 12 = 0.75'
0.75 + 30 = 30.75' long
30.75 x 15.5 = 476.625 square feet
32
___ x ___ = area of a triangle
1/2 base times height
33
1/2 base times height = ___
area of triangle
34
___ x ____ divided by ___ = area of triangle
base times height divided by 2
35
base times height divided by 2 = ___
area of triangle
36
What is the area of a triangle parcel of land that is 400 ft wide and 200 ft deep?
40,000 sq feet
400 x 200 = 80,000
80,000 divided by 2 = 40,000
37
The most basic way to estimate building construction cost is the ___ method, which uses the area of the building.
Square-foot
38
Most homes and commercial buildings have a cost per __
square foot
39
A contractor has been asked to estimate the cost to build a new house. The home's living area is 1,783 square feet with a 500 square foot garage. In this region, homes typically cost $110 per square foot to build, though garage space only costs $60 because the ceiling and interior walls can be left unfinished. What is the estimated cost to construct this house?
$226,130
1,783 sq ft x $110 = 196,130
500 sq ftt x $60 = 30,000
196,130 + 30,000 = 226,130
40
The cost of using money
Interest
41
the amount of ___ paid is determined by the agreed annual rate, amount of money borrowed (loan amount), or the amount of money still owed (loan balance), and the period of time the money is held.
Interest
42
The percentage of the sales price or appraised value (whichever is less) that the lender is willing to lend
Loan-to-value (LTV) ratio
43
The Loan-to-value (LTV) ratio is the percentage of the sales price or appraised value (whichever is ___) that the lender is willing to lend
less
44
The Loan-to-value (LTV) ratio is the percentage of the ___ or ___ (whichever is less) that the lender is willing to lend
sales price or appraised value
45
Interest on a loan secured by real estate is typically ___ based on ___.
simple interest based on a specified annual return.
46
A 4.5% annual interest payment on a loan of $180,000 = ___
8,100
180,000 x 0.045 = 8100
47
A 4.5% annual interest payment on a loan of $180,000 is $8100. What is the monthly payment of interest?
$675
8100 divided by 12 = 675
48
Interest is always calculated on the ___.
remaining principal balance
49
___ is always calculated on the remaining principal balance
interest
50
principal x rate x time = ___
interest
51
interest = ___ x ____ x ____
principal x rate x time
52
interest divided by rate x time = ___
principal
53
principal = ___ divided by ___ x ___
interest divided by rate x time
54
interest divided by principal x time = ____
rate
55
rate = ___ divided by ____ x ___
interest divided by principal x time
56
interest divided by principal x rate = ___
time
57
time = ___ divided by ___ x ____
interest divided by principal x rate
58
The unpaid balance of the loan
principal
59
The percentage of interest to be paid
rate
60
the length of the period for which interest is to be paid
time
61
A home equity loan with a 4.5% interest rate has a remaining balance of $123,000. What is the monthly interest?
$461.25
PRINCIPAL x RATE x TIME = INTEREST
123,000 x 0.045 (4.5%) = 5535
5,535 divided by 12 = 461.25
62
The income projected for an income-producing property after deducting losses for vacancy, collection, and operating expenses
Net operating income
63
When appraising income-producing property, the value is estimated by using the annual ___ and the current ___ or ___
annual Net operating income
current market rate or capitalization rate
64
scheduled gross income - vancancies & credit losses = ___
effective gross income
65
___ - ___ & ___ = effective gross income
scheduled gross income - vancancies & credit losses
66
effective gross income - annual operating expenses = ___
net operating income (NOI)
67
___ - ____ = net operating income (NOI)
effective gross income - annual operating expenses
68
net operating income (NOI) divided by rate of return = ____
value
69
value = ___ divided by ____
net operating income (NOI) divided by rate of return
70
net operating income (NOI) divided by value = ___
rate of return
71
___ divided by ___ = rate of return
net operating income (NOI) divided by value
72
___ x ___ = net operating income (NOI)
value x rate of return
73
value x rate of return = ___
net operating income (NOI)
74
An office building produces $132,600 annual gross income. If the annual expenses are $30,600 and the appraiser estimates the value using an 8.5% rate of return, what is the estimated value?
$1,200,000
132,600 - 30,600 = 102,000 NOI
102,000 diided by 8.5% (0.085) = 1,200,000 value
75
An office building produces $132,600 annual gross income. If the annual expenses are $30,600 and the appraiser estimates the value using an 8.5% rate of return, what is the NOI?
$102,000
132,600 - 30,600 = 102,000 NOI
76
The formulas for NOI may also be used to calculate either the return on investment (ROI) for real estate investing or the monthly NOI. In this case, total becomes ___, and value is replaced with ___.
Total becomes original cost
Value becomes investment
77
A man invests $335,000 in a property that should produce a 9% rate of return. What monthly NOI will he receive?
$2,512.50 monthly NOI
335,000 x 9% (0.09) = 30,150
30,150 divided by 12 months = 2,512.50
78
A man invests $335,000 in a property that should produce a 9% rate of return. What annual NOI will he receive?
$30,150
335,000 x 9% (0.09) = 30,150
