I need to know which formulas are used and explanations to figure out the answers

Real Estate Finance and Investments Chapter 10 Test Bank

I need to know which formulas are used and explanations to figure out the answers Real Estate Finance and Investments Chapter 10 Test Bank 1. Consider the table above for a hypothetical income property that is under consideration for purchase with a $455,000 loan. Using the principles of mortgage equity capitalization, what is the estimated total property value (rounded to the nearest $100)? (D) (A) $317,500 (B) $482,900 (C) $772,500 (D) $794,200 2. Using the information from the question above, what would be the equity dividend rate? (B) (A) 2.4 percent (B) 3.5 percent (C) $12,000 (D) $317,498 (E) Not enough information 3. Given the following sales adjustment grid, what adjustment would be made for size? (C) Characteristic Subject 1 2 3 4 Sales price 116,000 120,000 124,000 126,000 Square feet 1,800 1,700 1,900 1,900 1,900 Exterior Alum Brick Alum Alum Brick Age 16 20 20 18 20 (A) $20 psf. (B) $40 psf. (C) $50 psf. (D) $35 psf. 4. A property is sold for $200,000. Typical financing terms are an 85% loan with a 10% interest rate over 15 years. If the before-tax cash flow is $2,000, what is the overall capitalization rate? (B) (A) 10.96% (B) 11.96% (C) 19.13% (D) 9.96%