Real Estate Math
A property purchased for $180,000 with 25% down is financed with a $135,000 mortgage. After 5 years the balance is $128,000. What is the owner's equity if the property value is now $210,000?
A$45,000
B$75,000
C$82,000✓ Correct
D$128,000
Explanation
Equity = Current value − Loan balance = $210,000 − $128,000 = $82,000. To solve this, multiply the relevant values: $180,000 and $135,000 at 25%.. The correct answer is $82,000.. This is a common calculation on the Georgia real estate exam.
Related Georgia Real Estate Math Questions
- A buyer assumes an existing mortgage with a balance of $180,000 at closing. The seller originally borrowed $200,000. The buyer will be responsible for what amount in addition to the down payment?
- A property's assessed value in Georgia is $120,000 (40% of fair market value). What is the fair market value?
- A Georgia property is assessed at $160,000 with a mill rate of 35 mills. What are the annual property taxes?
- A listing broker receives a 6% commission and keeps 40% while paying the remaining 60% to the selling broker. If the home sold for $360,000, how much does the selling broker receive?
- A property produces annual gross rents of $86,400 with a 5% vacancy. Operating expenses are 35% of EGI. At a 7.5% cap rate, what is the value?
- A buyer puts 5% down on a $240,000 home. How much is the down payment?
- A buyer purchases a property for $260,000 with a 20% down payment. What is the loan-to-value ratio?
- A 40-acre parcel sells for $3,200 per acre. What is the total sale price?
Practice More Georgia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Georgia Quiz →