# unit 1 Flashcards

equation to find part

total x rate

equation to find total

total / rate

equation to find rate

part / total

equation to find interest

part = total x rate x time

equation for linear measurement

area = length x width

equation for linear measurement of a triangle

area = (length x width) / 2

equation for volume

volume = length x width x height

calendar year

365 days

statutory year

30 days month / 360 days a year

Under Texas law, who owns the property on the day of closing, and therefore is responsible for any expenses up to that day (or is owed any rents on a rental property up to that day)?

Under Texas law, the seller owns the property on the day of closing and is responsible for expenses and/or may collect rents.

The seller owes $2,400 in taxes for the current year. With a May 28 closing date and using a calendar year, the seller will be debited how much? (Assume it isNOTa leap year.)

$973.10

The seller wants to net $65,000 from the sale of his house after paying the broker’s fee of 6%. His gross sales price will be

$69,149.

The seller offers to take back a second mortgage of $25,000 at a simple interest rate of 4.5%. The loan is amortized over 10 years. How much is the buyer paying on the second?

$217.70 per month

In 2016, taxes on Don Mark’s home were paid in full and amounted to $1,468. He sold the home to Chuck Harris and closed the sale on August 29, 2017. What was the prorated tax amount, using a statutory year and prorating through the day of closing?

$974.40

How much interest will the seller owe the buyer for a closing date of August 10 if the outstanding loan balance is $43,580? The interest rate on this assumable loan is 10.5% , and the last payment was paid on August 1. Prorations are to be done through the day of closing, using a statutory year.

$127.11