A 10-acre parcel is priced at $32,000 per acre. How much would a buyer pay for exactly 2.5 acres?
Why $80,000 Is Correct
Answer B: $80,000
Exam Tip: Real Estate Math
Math questions are formula-based. Memorize the key formulas: commission splits, proration, cap rate (NOI ÷ Value), GRM (Price ÷ Gross Rent), and LTV (Loan ÷ Value). Practice converting between annual and monthly figures.
People Also Study
Related California Questions
- Under the California Real Estate Law, how much experience as a licensed salesperson is required before an applicant can apply for a broker's license?DRE & Licensing
- How many acres is a parcel measuring 660 feet by 330 feet? (1 acre = 43,560 sq ft)Real Estate Math
- A rectangular lot is 150 feet wide and 200 feet deep. What is its area in acres? (1 acre = 43,560 sq ft)Real Estate Math
- A rectangular lot measures 150 feet by 200 feet. What is the lot size in acres? (1 acre = 43,560 sq ft)Real Estate Math
- Under California's Proposition 13, the assessed value of a property may increase by a maximum of how much per year (absent a change in ownership)?Real Estate Math
Key Terms to Know
The gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Study This Topic
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →