4.1 Set 3 Review Questions) With Answers (Final)

8/18/2019 4.1 Set 3 Review Questions) With Answers (Final)

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SET 3 REVIEW QUESTIONS (with answers)

1. The property of a person who dies leaving no heirs passes to the state by the right of:

a. Acquisition

b. Escheat

c. Condemnation

d. Eminent Domain

2. Condemnation of private property for public use is called the right of:

a. Seizure

b. Escheat

c. Eminent Domain

d. Acquisition

3. Anything that is not real property is

a. Real estateb. A fixture

c. An appurtenance

d. Personal property

4. An appraisal may include a(n)

a. Property description

b. Opinion of property condition

c. Estimate of market value

d. All of the above

5. Real property includes:

a. Land

b. Fixtures and appurtenances to land

c. Anything immovable by law, with certain exceptions

d. All of the above

6. The form of deed used to return title to real estate to its owner when the debt

secured by a deed of trust is paid in full is the:

a. Warranty deed

b. Reconveyance deed

c. Quitclaim deedd. Tax deed

7. The form of deed that makes no warranties, express or implied, is the

a. Grant deed

b. Reconveyance deed

c. Quitclaim deed


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d. Tax deed

8. Tenancy by the entirety is a form of:

a. Marital property ownership

b. Tenancy in common

c. Business property ownership

d. Ownership in severalty

9. A landlord has a(n):

a. Fee simple qualified

b. Fee simple defeasible

c. Estate of tenancy

d. Leased fee estate

10. The 4 unities required for a joint tenancy include:

a. Tenancy, location, title, and possession

b. Time,title, interest, and possession

c. Possession, ownership, use and enjoyment

d. Title, time, location and possession

11. An individually owned parcel includes a share of common areas in a:

a. PUD (Planned Unit Development)

b. Condominium

c. Stock corporation

d. Life estate

12. A type of real estate featuring ownership of airspace as well as an interest in

common in the entire parcel is a :a. PUD (Planned Unit Development)

b. Condominium

c. Stock corporation

d. Life estate

13. If you want your children to inherit a property from you, you should prefer a:

a. Life estate

b. Defeasible fee

c. Remainder

d. Special limitation

14. A life estate is a(n)

a. Present, possessory interest

b. Future interest

c. Estate of tenancy

d. Fee simple defeasible


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15. Property acquired by a spouse during marriage by gift or inheritance is:

a. Marital property

b. Community property

c. Separate property

d. Jointly owned property

16. What are the consideration in determining whether something attached to real

property is a fixture?

(Whether something attached to real property is a fixture may be determined

by a) considering the intention of the person who placed the item on the land,

b) the method of attachment, the adaptability of the thing for the land’s ordinary

use, c)the agreement of the parties and d) the relationship of the parties

17. A township is divided into:

a. 160 sections

b. 36 sections

c. 4 ranges

d. 36 meridians

18. You are appraising an industrial building with an NOI of P 170,000. You have pre-

viously appraised or studied the comparable properties listed below. Use all of the

information you have on hand to find a suitable capitalization rate for the subject,

then the subject’s value. Round answer to the nearest P 1,000

Property Selling Price Net Operating Income Capitalization rate

A P 1,360,000 P 148,000 10.90

B 940,000 110,000 11.7

C 1,270,000 150,000 11.8 D 1,105,000 120,600 11.4

E 1,500,000 320,000 21.3

The capitalization rate of property E appears out of line with the rest of the compa-

rables and should be discarded.

Based on the 4 remaining comparables, the value of the subject property is in a

range from about P 1,441,000 ( P 170,000/.118 to about P 1,560,000 (P 170,000/

.109)

19. A subdivision map is referred to in the:

a. Lot and block systemb. Lot, block and tract system

c. Both a and b

d. Neither a nor b

20. The scientific study of population statistics is:

a. Scientography

b. Segmentation


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c. Demography

d. Forecasting

21. The amount initially paid for a good or service is its:

a. Price

b. Market valuec. Investment value

d. Cost

22. Market value is based on:

a. Insurable value

b. Most probable price

c. Cost

d. Value-in-use

23. Short-term financing instruments are part of the:

a. Money market

b. Capital market

c. Absorption analysis

d. Feasibility study

24. Longer-term financing instruments are part of the:

a. Money market

b. Capital market

c. Absorption analysis

d. Feasibility study

25. Under a deed of trust, the lender is the

a. Mortgagor

b. Mortgagee

c. Equity investor

d. Reconveyance

26. Under a mortgage, the lender is the

a. Mortgagor

b. Mortgagee

c. Equity investord. Reconveyance

27. Explain the difference between market value and the sales price.

Market value is an estimate of the worth of a property. Sales price is the actual

selling price of a property.

28. What economic principle is being acted upon in each case below:

a. A less expensive house tends to gain in value because of more expensive


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neighborhood houses __Progression _

b. The value of a property tends to be limited by what it costs to buy another

property similar in physical characteristics function, or income. Substitution

c. Plans have been announced for a multi-million peso shopping center to be

built next door to a vacant lot you own. Property values in the area of the

proposed site will tend to increase as a result of this announcement.Anticipation

d. The rental value of vacant land can sometimes be greater than it would be if

the land were improved with a building. Highest and best use

e. In many downtown areas, parking lots make more profit than older office

buildings. Highest and best use

f. An investor will probably pay more for the last 20 lots in an area where the

demand for houses is great than for the first 20 lots in the same area.

Supply and demand

g. The cost of installing an air-conditioning system in an apartment building is

justified only if the rental increase that can be expected as a result of the

installation exceeds the amount spent. Contribution

29. The appraisal approach that would be most useful in valuing single-family residential

property is the:

a. Sales comparison approach

b. Cost approach

c. Income capitalization approach

30. The appraisal approach that normally would be most useful in valuing investment

property is the:

a. Sales comparison approachb. Cost approach


31. The appraisal approach that normally would be most useful in valuing public and

religious-use properties is the:

a. Sales comparison approach

b. Cost approach


32. The reliability of an appraisal depends on the:a. Knowledge and judgment of the appraiser

b. Accuracy of the data used

c. Both a and b

d. Neither a and b

33. Property A in a neighborhood sold for P 800,000. It is very similar to property B,

which you are appraising, except that property A has a 2-car garage worth P60,000.


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Using the formula for the sales comparison approach, calculate the market value of

property B.

Value of property B : P 800,000 - 60,000 = P 740,000

34. An office building has depreciated 40% since it was built 25 years ago. If it would

cost P 4,250,000 to build today, and if similar sites are selling for P 1,750,000, what isthe market value of the property using the formula for the cost approach?

P 4,250,000 - (40% X P 4,250,000) + P 1,750,000 = P 4,300,000

35. You are appraising a single-storey building producing net operating income of P

240,000 per year. If you determine that a 13% return was justified on the investment,

what would be your value estimate of the property using the income capitalization

approach formula?

P 240,000 / 13% = P 1,846,153,85 or P 1,846,000 (Rounded)

36. The standard of measurements for a single-family detached residence is the:

a. Gross building area

b. Gross living area

c. Gross leasable area

d. Gross construction area

37. The sales comparison approach relies on the principle of:

a. Anticipation

b. Leverage

c. Substitution

d. Highest and best use

38. Another name for the sales comparison approach is:

a. Cost Approach

b. Income capitalization approach

c. Market data approach

d. Substitution approach

39. The transaction price of a property is its:

a. Sales price

b. Market valuec. Insurance value

d. Asking price

40. Most residential appraisals are based on

a. The leased fee

b. Fee simple ownership

c. The leasehold interest


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d. Less than fee simple ownership

41. The appraisal process requires the appraiser to collect, record and verify

a. Only data on the subject property’s neighborhood

b. Data on all neighborhoods in the city with which the appraiser is unfamiliar

c. Data on an annual basisd. Data on the region, city and neighborhood

42. Ideally, the appraiser of a residential property will collect data on comparable

property sales that occurred no earlier than

a. 6 months prior to the date of appraisal

b. One year prior to the date of appraisal

c. 18 months prior to the date of appraisal

d. 2 years prior to the date of appraisal

43. When choosing comparable sales for the sales comparison approach, property

characteristics that should be identical or very similar to those of the subject property

include:

a. Size of lot and building

b. Age of building and type of construction

c. Number and type of rooms

d. All of the above

44. One method of compensating for sales that involved different terms of financing is

use of the

a. Financing readjustment grid

b. Cash equivalency techniquec. Loan-to-value ratio

d. Operating statement ratio

45. To be considered comparable to the subject property, a comparable must have been

sold

a. In an arms-length transaction

b. With a conventional mortgage

c. Without any form of secondary financing

d. For all cash

46. Explain how the terms land and site differ.

The earth’s surface and everything under it or on it, is considered land. When the

land is improved by the addition of utilities (water, gas, electricity) or other

Services (such as sewers), it becomes a site and may be considered suitable for

Building purposes.

47. Why would an appraiser need to know site valuation

a. In the cost approach


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In applying the cost approach, site value must be distinguished from the cost

Of improvements, as indicated by the following formula:

Land Value + (RCN - Depreciation on Improvements)

= Estimated property value

b. For tax purposes

In computing depreciation for tax purposes, site value must be subtractedFrom total property value, because land is not depreciable.

48. Name 6 site valuation techniques. Which method is preferred and why?

Sales comparison method; Allocation method; Abstraction method; Subdivision

Development method; Ground rent capitalization and Land residual method.

49. Another term for developer’s profit is

a. Construction profit

b. Entrepreneurial profit

c. Project profit

d. Management profit

50. A church in a residential area is an example of

a. Police power

b. Forecast absorption

c. A non-conforming use

d. A private restriction

51. Zoning is an exercise of a government’s

a. Police powerb. Power of eminent domain

c. Right of condemnation

d. Right of priority

52. All improvement costs, less depreciation, are subtracted from sales price to derive

land value in the process called

a. Ground rent capitalization

b. Extraction

c. Entrepreneurial enterprise

d. Assemblage

53. Private deed restrictions often are enforced through a

a. Zoning variance

b. Zoning board

c. Homeowner’s association

d. Housing cooperative


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54. The ratio of total operating expenses to effective gross income is the

a. Operating expense ratio

b. Net income ratio

c. Effective gross income ratio

d. Break-even ratio

55. The ratio of the operating expenses plus annual debt service to potential gross

income is the

a. Operating expense ratio

b. Net income ratio

c. Effective gross income ratio

d. Break-even ratio

56. A building that has an effective gross income of P 500,000 and total operating

expenses of P 100,000 has what operating expense ratio?

a. .10

b. .15

c. .20

d. .25

57. To arrive at net operating income, expenses are deducted from:

a. Operating profit

b. Gross income

c. Effective gross income

d. None of the above

58. In the list below, check each item that is NOT an expense from an appraiser’s pointof view.

a. Gas and electricity

b. Depreciation on building

c. Water

d. Real estate taxes

e. Building insurance

f. Income tax

g. Supplies

h. Payments on air conditioners

i. Janitor’s salary j. Management fees

k. Maintenance and repairs

l. Legal and accounting fees

m. Principal and interest on mortgage

n. Advertising

o. Painting and decorating

p. Depreciation on equipment


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q. Value of janitor’s apartment (rent free)

r. Water and sewer tax

s. Salaries and wages of employees

t. Reserves for replacement

u. Payments on stoves and refrigerators

59. If a property’s net income ratio is .85, what is its operating expense ratio?

a. .15

b. 1.50

c. .58

d. .015

60. Another name for contract rent is

a. Market rent

b. Scheduled rent

c. Economic rent

d. Surplus rent

61. Another name for market rent is

a. Contract rent

b. Scheduled rent

c. Economic rent

d. Surplus rent

62. A commercial property producing an annual gross income of P390,000 was sold 2

months ago for P 3,412,500. What is the property’s gross income multiplier (GIM)?

a. 7b. 7.75

c. 8.5

d. 8.75

62. A single-family residence that sold recently for P 2,850,000 can be rented for P

14,000 per month. . The property’s gross rent multiplier is

a. 17

b. 204

c. 207

d. 210

63. Vacancy and collection losses are deducted from gross income using a(n)

a. Potential gross income multiplier

b. Effective gross income multiplier

c. Gross income multiplier

d. Gross rent multiplier


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64. In the formula for the operating expense ratio

a. Operating expenses are divided by effective gross income

b. Effective gross income is divided by operating expenses

c. Potential gross income is divided by effective gross income

d. Effective gross income is divided by potential gross income

65. In the formula for the net income ratio

a. Effective gross income is divided by potential gross income

b. Potential gross income is divided by effective gross income

c. Effective gross income is divided by net operating income

d. Net operating income is divided by effective gross income

66. Construct an interest rate for a recently sold commercial property with the following

known facts:

Selling price: P 4,350,000

Site Value: 1,250,000

Building estimated remaining economic life: 25 years

Total net operating income: P 570,000

What is the overall cap rate for the property?

Sales price P 4,350,000

Site Value - 1,250,000

Building Value P 3,100,000

Recapture rate = 100%/ 25 years .04

NOI available for building recapture P 124,000

Interest rate (building) = P 124,000/P4,350,000

.0285 = 2.85%

Total NOI P 570,000NOI for building recapture - 124,000

NOI available for site P 446,000

Interest rate = P 446,000/435,000= .1025 or 10.25%

Overall cap.rate = 10.25% + 2.85 = 13.10%

67. Assuming the following data, what capitalization rate would you use in

appraising the subject property?

A 30-year old mortgage covering 75% of property value can be obtained from a

Bank at 8 ½ %. The mortgage constant is .092.

Equity for this type of property requires a 12% returnLoan (.75 x .092) = .069

Equity (.25 x .12) = .030

Overall rate = .099 or 9.9%

68. The property under appraisal is a 25 year old apartment building producing an NOI

of P 500,000 a year. Compute the value of the property, assuming a remaining economic


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life of 40 years for the building, a 10 ½ % interest rate, and land value estimated at P

1,000,000.

Estimated land value P 1,000,000

Net operating income P 500,000

Interest on land value (P 1,000,000X10.5%) - 105,000

Residual income on building P 395,000Cap.rate for building

Interest rate 10.5%

Recapture rate (100%/40 2.5

13.0

Building value P 395,000/.13 3,038,461

Total property value P 4,038,461

Say, P 4,040,000

69. A new office building valued at P 3,000,000 produces an annual NOI of P 530,000. A

first mortgage of 60% can be obtained from a bank at 10 ¼ %. Equity for this type of

property requires a 12% return, and the building’s remaining economic life is estimated

at 50 years. Estimate the total property value by Land residual technique.

Estimated building value P 3,000,000


Cap.rate for building

Interest rate 60% x 10.25% = 6.15%

40% X 12% = 4.8

10.95%

Recapture rate (100%/50) 2.0

Total 12.95%Discount and recapture on building

Value (P3,000,000 X 12.95%) -388,500

Residual income on land P 141,500

Land value P141,500/10.95% 1,292,237


Say, P 4,300,000

70. Which of the 2 capitalization methods - straight line o annuity- is appropriate in each

of the following examples?

a. An office building leased by a major oil company is being appraised. The leasewill run for another 22 years. Annuity

b. A building with a 20-year lease is being appraised. The lessee has hinted to the

appraiser that if the building is to be sold, he will expect to renegotiate his

lease with the new owner, because the rent is more than he can really afford.

Straight line

71. In income property investments

a. low risk = low cap rate = high value


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b. low risk = low cap rate = low value

c. low risk = high cap rate = low value

d. low risk = high cap rate = high value

72. All other factors being equal, as thelocation of an income property becomes less

desirable, the cap rate used will bea. lower

b. higher

c. less reliable

d. unaffected

73. Recapture generally applies to

a. Wasting assets

b. Nonwasting assets, such as land

c, Both a and b

d. Neither a and b

74. In the land residual technique, the appraiser starts with an assumption of

a. Replacement cost

b. Building value

c. Net capitalization

d. Land value

75. In the building residual technique, the appraiser starts with an assumption of

a. Replacement cost

b, Building value

c. Net capitalizationd. Land value

76. The cash on cash rate is the same as the

a. yield capitalization rate

b. Equity dividend rate

c. Overall capitalization rate

d. Break-even point

77. Name the 2 component rates that are inherent in every capitalization rate

Interest rateRecapture rate

77. Under which method are the recapture installments lowest in the earlier years?

a. Annuity

b. Straight-line

78. Under which method are the installments highest?

a. Annuity


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b. Straight-line

79. Of the two recapture approaches, which would yield?

a. The highest value - Annuity

b. The lowest value - Straight Line

80. Which recapture method suggests the greatest reduction in risk?

a. Annuity

b. Straight line

81. Using the following data, compute value by (a) the building residual technique and

(b) the land residual technique. Round your figures to the nearest P 1,000

Given data:

a. Net operating income is P 400,000

b. Land Value is P 500,000

c. 65% of the value of the property can be borrowed at 11%, and equity capital

for this type of investment requires a 12% return

c. The building remaining economic life is 25 years

Interest rate: 65% x 11% = 7.15%

35% x 12% = 4.20%

Total 11.35

Recapture rate: 100%/25 yrs = 4%

a. Building Residual Technique:

Estimated land value P 500,000

NOI P 400,000

Interest on Land value

(P 500,000 x .1135) ( 56,750)Residual income to bldg. P 343,250

Cap.rate for building

Interest rate 11.35

Recapture rate 4.00

Overall rate 15.35%

Building value (rounded)

( P343,250/.1535) 2,236,000


b. Land Residual Technique

Estimated building value P 2,236,000NOI P 400,000

Cap rate for building

Interest rate 11.35%

Recapture rate 4.00%

Overall rate 15.35%

Interest and recapture on building value

(P 2,236,000 x .1535) ( 343,230)


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P 56.770

Land value (rounded) P 56,770/.1135 500,000


82. In this case problem, you will estimate the market value of a property by the income

Capitalization approach. Round all figures to the nearest 1,000

You have been asked to appraise a one-storey commercial building located in a small

Neighborhood shopping center. The building is about 20 years old and is divided

into 4 separate stores, all of equal size. Each store pays a yearly rental of P 102,000,

which is well in line with comparable properties analyzed.

The owner of the subject property lists the following items of expense for the

previous year:

o Real estate taxes P 40,000

o Insurance 3-year policy P 30,000

o Repairs and maintenance P 28,000

o Mortgage payments P 84,000

o Legal and accounting fees P 5,500

o Miscellaneous expenses P 5,000

In addition to the above expense listing, you obtain the following information:

- Tenants pay for their own water, heating, electricity, and garbage removal

- Repairs and general maintenance should be based on 12% of effective gross

income

- Miscellaneous expenses should be increased to 2% of potential gross income

-

The records of property managers indicate that vacancy and collection lossesin the area run about 4%

- A new roof, costing P 20,000 and having an average life of 20 years, was

installed last year

-

The gas furnace in each store can be replaced for P 9,500 and will carry a 10-

year guarantee

- Recent land sales in the area indicate that the land value of the subject

property should be estimated at P 550,000

- You have determined from banks in the area that 75% of the value of the

property can be borrowed at 11% interest, and equity money for this type of

investment requires a 13% return.- The building is 20 years old and appears to have depreciated about 1/3

a. On the basis of the information provided, reconstruct the operating statement

b. Determine the appropriate capitalization rate

c. Estimate the total property value

a. Reconstruction of operating statement

Potential gross income


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(4 stores x P 102,000 per year) P 408,000

Allowance for vacancy and bad debts (4%) ( 16,320)

Effective gross income P 391,680

Variable expenses:

Repairs and maintenance (12% of EGI) P 47,000

Legal and acctg. Fees 5,500Miscellaneous expense (2% of PGI) 8,160

Fixed expenses

Insurance ( P30,000/3 yrs 10,000

Real estate taxes 40,000

Reserves for replacement

Roof (P20,000/20years) 1,000

Furnaces (P 9,500 x 4/10 years P3,800

Total operating expenses ( 115,460)


b. Capitalization rate estimate:

Interest rate

First mortgage (75% x 11%) 8.25%

Equity (25% x 13%) 3.25

Total interest rate 11.5%

Recapture rate (100%/40 years rem.eco.life) 2.5%

Total capitalization rate 14.0%

c. Estimate of property value

Building residual technique

Estimated land value P 550,000

NOI P 276,220

Interest on land value (P550,000 x 11.5%) ( 63,250)Residual income to building P 212,970

Cap. Rate for building

Interest rate 11.5%

Recapture rate 2.5%

14.0%

Building value rounded ( P 212,970/.14) 1,521,210


83. You are appraising a commercial building earning an annual NOI before recapture of

P 500,000. Based on supportable information, the interest rate has been establishedat 15%. Land value has been estimated at P 1,000,000 and the building’s remaining

economic life at 25 years.

Determine the estimated value of the property in each case below

a. The property has year-to-year tenants of average credit risk

b. The property is leased for the entire 25 years to a national concern with an

excellent credit rating.


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The value indications are different in cases “a” and “b” because of different

Assumptions in types of income streams and methods of recapturing capital.

a. Building residual - Straight line method


NOI P 500,000

Return on land value (P 1,000,000 x .15) ( 150,000)Residual income to building P 350,000

Cap. Rate for building

Interest rate 15%

Recapture rate 4%

Building value (P 350,000/.19) (rounded) 1,842,105

Total value of the property P 1,842,105

b. Property residual- annuity method

Total net operating income P 500,000

Annuity factor (25 years at 15%) x 6.464

Present worth of net operating income P 3,232,000

Present worth of reversion- P 1,000,000 x .30

(25 years at 15%) 30,000

Present value of property P 3,262,000

Or

Building residual - Annuity method


Residual income to building P 350,000

Annuity factor (25 years@15%) x 6.464

Value of Building 2,262,400

Total value of property P 3,262,400

84. Why is it unlikely that applications of the 3 approaches to the same property will

result in identical estimates of value?

All 3 approaches involve many variables that will affect the estimate of value. In

the cost approach, the many factors contributing to construction cost and property

depreciation must be recognized an evaluated. The Sales comparison approach

is successful only when recent sales of comparable properties are available. Even

single-family residences may have many individual differences, entailing price

adjustments that in turn rely on accurate estimations of the value of property

features. The income capitalization approach relies on accurate income analysis

and may involve complex computations.85. A community strip shopping center, built 4 years ago, is being appraised. The

Property is fully rented to a major supermarket chain, a variety of retail businesses,

a pizza parlor, and a nationally franchised ice cream parlor. The area is growing and

such businesses have flourished. As a result, there is high demand for property such

as the subject, and vacant land prices in the area have increased dramatically over

the past 4 years. Which appraisal approach(es) will probably be most important in

finding the market value of the subject property and why?


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The income capitalization and cost approaches will be most important in valuing

the subject property. The cost approach will set the upper limit of value, as there

is land available for similar construction. The income capitalization approach is

important because of the property’s income-producing abilities and potential. The

value reached by the income capitalization approach will be influenced by the

existence of major tenants, who may be financially sound but who also may benefitfrom long-term contracts that may not reflect the recent dramatic increases in

property value in the area.

86. Scheduled rent that is higher than market rent creates

a. Overage rent

b. Gross rent

c. Excess rent

d. Escalation rent

87. The amount paid over minimum base rent in a percentage lease is

a. Overage rent

b. Gross rent

c. Excess rent

d. Escalation rent

88. The lease under which the tenant pays a fixed rental and the landlord pays all

expenses of ownership is the

a. Gross lease

b. Triple net lease

c. Net lease

d. Percentage lease

89. An index will be referred to is a(n)

a. Gross lease

b. Triple net lease

c. Escalation clause

d. Expense-stop clause

90. The interest of a sublease is a

a. Leasehold

b. Leased fee

c. Subleaseholdd. Sandwich lease

91. Increases in maintenance costs are passed on to tenants under a(n)

a. Tax-stop clause

b. Expense-stop clause

c. Gross lease

d. Escalation clause


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92. Explain how a leasehold estate is created.

A leasehold estate is created (may be valued) when scheduled rent under the

lease is less than the fair market rental, or economic rent.

93. If houses in your area have increased in value 8% during the past year and

average price of houses sold last year was P 950,000, what is the average priceof houses sold today?

P 950,000 x .08 = P 76,000

P 950,000 + P76,000 or P 950,000 x 1.08 = P 1,026,000

94. Mr. Jose purchased a house for P 1,250,000 and sold it for P 1,400,000. What

percent profit did he make on his investment?

P 1,400,000 - P 1,250,000 = P 150,000

P 150,000 / 1,250,000 = .12 or 12%

95. A property has an assessed value of P 450,000. If the assessments is 36% of market

value, what is the market value?

P450,000/.36 = P 1,250,000

96. A property valued at P 2,000,000 produces a net operating income of P 240,000 per

year. What percentage of value (rate) does this property earn?

P 240,000/ P 2,000,000 = .12 or 12%

97. The mean of 5 houses sales prices of P 1,000,000, P 750,000, P 1,750,000, P

2,000,000, and P 1,500,000 is

a. P 1,400,000

b. P 1,500,000

c. P 2,200,000d. P 1,750,000

98. The median of the house sales price in question 97 is

a. P 1,400,000

b. P 1,500,000

c. P 2,200,000

d. P 1,750,000

99. The difference between the highest and lowest variance is the

a. Meanb. Mode

c. Median

d. Range

100. The aggregate of the house sales prices in question 97 is

a. P 1,400,000

b. P 1,500,000


20/20

c. P 7,000,000

d. P 1,750,000

101. To determine the value in 8 years of an investment of P 100,000 at 10% interest

compounded annually, the applicable factor is

a. 2.143589b. 2.357948

c. 1.948717

d. 2.182875

102. The factor used to find the monthly payment required to amortize a loan of

P 1,470,000 at 11% interest over 30 years is

a. .0092

b. .0096

c. .0100

d. .0097

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4.1 Set 3 Review Questions) With Answers (Final)