Real Estate Math
A Missouri investor bought a commercial property for $500,000 and financed $400,000. The equity position is:
A$100,000✓ Correct
B$200,000
C$400,000
D$500,000
Explanation
Equity = Purchase Price - Loan Amount = $500,000 - $400,000 = $100,000. Using the values given ($500,000, $400,000), apply the appropriate formula.. The correct answer is $100,000.. This is a common calculation on the Missouri real estate exam.
Related Missouri Real Estate Math Questions
- A Missouri investment property costs $280,000. The investor expects 12% annual return. Annual NOI needed is:
- A Missouri commercial building has an NOI of $48,000 and a market cap rate of 9%. The estimated value is:
- A Missouri seller nets $215,000 after paying a 6% commission. What was the gross sales price?
- A Missouri loan of $160,000 at 7% interest has a first-month interest charge of:
- A Missouri home sells for $198,500. The buyer puts 15% down. What is the LTV on the mortgage?
- A Missouri home costs $245,000. The buyer qualifies for a USDA loan with 0% down. The USDA guarantee fee is 1% upfront. How much is the upfront fee?
- A Missouri seller wants to net $240,000. Agent commission is 6%, closing costs are $3,000. What must the home sell for?
- A Missouri property earns $2,800/month in rent. The owner wants a 9% return. What is the maximum purchase price justified?
Practice More Missouri Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Missouri Quiz →