Math

SQUARE FEET AND ACRE

A tract of land in a recreational area is measured at 395,340 square feet. A corner of the tract, 30 feet wide and 110 feet deep, is owned by the county. The privately owned land sold for $1,250 per acre. What was the total amount realized from the sale:
A. $1,250;
B. $6,250;
C. $9,375;
D. $11,250.

REMEMBER 43560?

(1) 110 x 30 = 3,300;
(2) 395,340 - 3,300 = 392,040;
(3) 392,040 / 43,560 = 9;
(4) 9 x $1,250 = $11,250.
ANS D

return on investment = cap rate

return of investment = RE-CAPTURE

CAPITALIZATION RATE AND VALUE

1. Cameron owns a 30-unit apartment building next to a loud night club. Cameron loses $400 net income per month because of the loud noise. Many appraisers suggest using a 12% capitalization rate for this type of property in that neighborhood. Cameron's property suffers a loss in value of approximately:
A. $4,800;
B. $48,000;
C. $40,000;
D. $2,400.

$400 x 12 = $4,800 annual loss of income
$4,800 divided by 12% = $40,000 loss of value
ANS C

ACRE = 43560 SQ FT

5. How many lots, each measuring 50 feet wide by 100 feet deep, could be created from an acre of land of the suitable dimensions:
A. 4;
B. 5;
C. 6;
D. 8.

IF U DO IT AGAIN, THEN ...!

An acre of land contains 43,560 square feet; each of the lots would contain 5,000 square feet (50x 100). 43,560 divided by 5,000 = 8.71 lots. ANS D