Real Estate Math
A Tennessee property appraises for $295,000. The buyer can borrow up to 80% LTV. How much must the buyer pay as a down payment?
A$59,000✓ Correct
B$23,600
C$29,500
D$41,300
Explanation
Maximum loan = $295,000 × 80% = $236,000. Down payment = $295,000 − $236,000 = $59,000. To solve this, multiply the relevant values: $295,000 at 80%.. The correct answer is $59,000.. This is a common calculation on the Tennessee real estate exam.
Related Tennessee Real Estate Math Questions
- A Tennessee investor uses a 9.5% cap rate to value a property with annual NOI of $64,600. What is the estimated value?
- Using a 360-day banker's year, how many days is the proration period if closing occurs on March 15? (Seller pays through day of closing.)
- A Tennessee broker earns a 5.5% commission on a $410,000 sale. The broker pays their affiliate broker 55% of the commission. How much does the affiliate broker earn?
- A broker receives a 6% commission on a $175,000 sale. The co-op split is 50/50 between the listing brokerage and the selling brokerage. The selling agent receives 60% of their brokerage's split. How much does the selling agent earn?
- A property is purchased for $225,000 with a 10% down payment. The buyer pays 2 discount points. What is the total amount paid for the points?
- A property has an assessed value of $85,000. The assessment ratio is 25%. What is the estimated market value?
- A rental property generates $3,600 per month in gross rent. Operating expenses are 40% of gross income. What is the annual NOI?
- What is the annual depreciation on a residential income property purchased for $280,000 (land value $30,000) using IRS straight-line depreciation over 27.5 years?
Practice More Tennessee Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Tennessee Quiz →