Chapter 12 Exam

Front

What is assessed valuation in real estate?

Back

Assessed valuation is the process of determining the value of a property for tax purposes, typically expressed as a percentage of the market value.

Front

How do you calculate the assessed valuation of a property?

Back

To calculate the assessed valuation, multiply the market value of the property by the assessment rate.

Front

What is appreciation in real estate?

Back

Appreciation is the increase in the value of a property over time, often expressed as a percentage.

Front

How do you calculate the future value of a property with appreciation?

Back

To calculate the future value, use the formula: Future Value = Present Value x (1 + appreciation rate) ^ number of years.

Front

What is a down payment in real estate transactions?

Back

A down payment is the initial upfront payment made when purchasing a property, usually expressed as a percentage of the purchase price.

Front

How do you calculate monthly mortgage payments?

Back

Monthly mortgage payments can be calculated using a mortgage calculator or the formula: M = P[r(1+r)^n] / [(1+r)^n – 1], where M is the monthly payment, P is the loan principal, r is the monthly interest rate, and n is the number of payments.

Front

What is the significance of the interest rate in a mortgage?

Back

The interest rate determines the cost of borrowing money for a mortgage; a higher interest rate results in higher monthly payments and total interest paid over the life of the loan.

Front

What is the purpose of a scale drawing?

Back

A scale drawing is a representation of an object or space that maintains proportional relationships, allowing for accurate measurements and visualizations.

Front

How do you convert real-life dimensions to a scale drawing?

Back

To convert real-life dimensions to a scale drawing, use the scale ratio to determine the corresponding dimensions in the drawing.

Front

What is the formula to calculate total cost based on usage and rate?

Back

Total Cost = (Usage in kWh / 100) x Charge per 100 kWh.