$1.(5$ points$)$ Assume a property is appraised with a value of $$680,000$ using the cost approach, $$720,000$ using the income approach, and $$740,000$ using the sales comparison approach. If the appraisal values are weighted at $20\%($cost$),30\%($income$)$ and $50\%($sales$),$ what is the appraised value of the property?

$2.(5$ points$)$ Michael purchased a home four years ago for $$520,000,$ borrowing $80\%$ of the home$$s value on a $30-$year loan at $4\mathrm{.}75\%.$ He is considering selling the home at this time, and his banker is not available to provide an update on his loan balance on the home. Help Michael out by calculating the remaining balance on this loan after four years.

$3.(5$ points$)$ For the previous problem, what is the annual rate of appreciation on Michael$$s equity into the home assuming he would consider selling the home for $$595,000$ after owning it for four years?

$4.(5$ points$)$ Ted is considering selling a property for $$600,000($after tax$)$ at the end of $2023.$ Alternatively, he feels he may be able to sell the property for $$640,000$ after tax in one year, and the after$-$tax cash flow from renting the property to a tenant for $2024$ would be $$25,000.$ Calculate the marginal rate of return from holding the property until the end of $2024.$

$5.(5$ points$)$ You are reviewing an appraisal on Ted$$s home, which came in at $$635,000.$ You are trying to determine whether the first comparable property is appropriate based on the adjustments that have been made between Ted$$s home and the comparable property. Given the information in the table provided, calculate the percentage of the gross adjustments between Ted$$s home and this comparable used by the appraiser.

Subject $($Ted$)$ Comparable Adjustment Factor $($per item$)$ Adjustment

Sale Price N$/$A $$600,000$ N$/$A

Bedrooms $46$ $$12,000$

Fireplace Yes No $$5,000$

Fenced yard Yes No $$8,000$

Lake view Yes No $$40,000$

Gated community Yes Yes $$20,000$

$$

$6.(5$ points$)$ Your customer, Mary Olson, has requested a loan to purchase a home in West Fargo. The home she has in mind is listed for $$280,000,$ and she would like a loan for up to $30$ years. The current $30-$year interest rate at your bank is $7\mathrm{.}40\%,$ and your maximum ratio for housing payment to total income is $29\%.$ If she can provide a $10\%$ down payment, how much income must Mary be earning per year in order to qualify for this loan based on the terms she has requested?

$7.(5$ points$)$ Assuming Mary needs to pay private mortgage insurance of $$75/$month as part of her loan payment, along with $$300/$month in property taxes and $$100/$month in insurance, what is the maximum loan amount she can afford based on an income of $$84,000$ per year?$(5$ points$)$ Assume a property is appraised with a value of $$680,000$ using the cost approach, $$720,000$

using the income approach, and $$740,000$ using the sales comparison approach. If the appraisal values

are weighted at $20\%($cost$),30\%($income$)$ and $50\%($sales$),$ what is the appraised value of the property?

$(5$ points$)$ Michael purchased a home four years ago for $$520,000,$ borrowing $80\%$ of the home's value on a

$30-$year loan at $4\mathrm{.}75\%.$ He is considering selling the home at this time, and his banker is not available to

provide an update on his loan balance on the home. Help Michael out by calculating the remaining

balance on this loan after four years.

$(5$ points$)$ For the previous problem, what is the annual rate of appreciation on Michael's equity into the

home assuming he would consider selling the home for $$595,000$ after owning it for four years?

$(5$ points$)$ Ted is considering selling a property for $$600,000($after tax$)$ at the end of $2023.$ Alternatively,

he feels he may be able to sell the property for $$640,000$ after tax in one year, and the after$-$tax cash flow

from renting the property to a tenant for $2024$ would be $$25,000.$ Calculate the marginal rate of return

from holding the property until the end of $2024.$

$(5$ points$)$ You are reviewing an appraisal on Ted's home, which came in at $$635,000.$ You are trying to

determine whether the first comparable property is appropriate based on the adjustments that have been

made between Ted's home and the comparable property. Given the information in the table provided,

calculate the percentage of the gross adjustments between Ted's home and this comparable used by the

appraiser.