Real Estate Math
An investor buys a building for $500,000 with a 25% down payment. What is the loan amount?
A$125,000
B$375,000✓ Correct
C$400,000
D$475,000
Explanation
Down payment = $500,000 × 25% = $125,000. Loan amount = $500,000 − $125,000 = $375,000.
Related Alabama Real Estate Math Questions
- A property sold for $385,000. The buyer made a 10% down payment. The lender charges a 1% origination fee. What is the origination fee?
- A home is listed for $399,000. After a 90-day market period, the seller reduces the price by 4%. What is the new list price?
- A buyer obtains a $200,000 loan at 6% annual interest. What is the first month's interest payment?
- An investor wants a 10% return on a $500,000 investment. What annual net operating income is needed?
- A $250,000 loan at 5% annual interest has a monthly payment of $1,342. How much of the first payment goes to interest?
- A property sold for $262,500. The assessed value is $175,000. What is the assessment ratio?
- If a property's cap rate is 9% and the NOI is $54,000, what is the value? If NOI increases to $60,000, what is the new value?
- A buyer puts 15% down on a $340,000 home. What is the loan amount?
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →