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 estate
b. 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 deed
d. 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

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

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 lands 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 previously 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 subjects 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 comparables 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 system
b. 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

c. Demography
d. Forecasting
21. The amount initially paid for a good or service is its:
a. Price
b. Market value
c. 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 investor
d. 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

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 approach
b. Cost approach
c. Income capitalization 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
c. Income capitalization 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.

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 is
the 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 value
c. Insurance value
d. Asking price
40. Most residential appraisals are based on
a. The leased fee
b. Fee simple ownership
c. The leasehold interest

d. Less than fee simple ownership

41. The appraisal process requires the appraiser to collect, record and verify
a. Only data on the subject propertys neighborhood
b. Data on all neighborhoods in the city with which the appraiser is unfamiliar
c. Data on an annual basis
d. 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 technique
c. 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 earths 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

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 subtracted
From 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 developers 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 governments
a. Police power
b. 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. Homeowners association
d. Housing cooperative

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 appraisers point
of 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. Janitors 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

q. Value of janitors 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 propertys 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 propertys gross income multiplier (GIM)?
a. 7
b. 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 propertys 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

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 570,000
NOI 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 %. The mortgage constant is .092.
Equity for this type of property requires a 12% return
Loan (.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

life of 40 years for the building, a 10 % 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 395,000
Cap.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 %. Equity for this type of
property requires a 12% return, and the buildings remaining economic life is estimated
at 50 years. Estimate the total property value by Land residual technique.
Estimated building value
P 3,000,000
Net operating income
P 530,000
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
Total property value
P 4,292,237
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 lease
will 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

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 be
a. 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 capitalization
d. 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 rate
Recapture 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

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
Total property value
P 2,736,000
b. Land Residual Technique
Estimated building value
P 2,236,000
NOI
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)

P 56.770
Land value (rounded) P 56,770/.1135
Total property value

500,000
P 2,736,000

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 losses
in 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 10year 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

(4 stores x P 102,000 per year)

Allowance for vacancy and bad debts (4%)
Effective gross income
Variable expenses:
Repairs and maintenance (12% of EGI) P 47,000
Legal and acctg. Fees
5,500
Miscellaneous 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
Net operating income
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
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)
Total property value

P 408,000
( 16,320)
P 391,680

( 115,460)
P 276,220

P 550,000

1,521,210
P 2,071,210

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 established
at 15%. Land value has been estimated at P 1,000,000 and the buildings 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.

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
Estimated land value
P 1,000,000
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
Estimated land value
P 1,000,000
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?

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 propertys 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 benefit
from 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. Subleasehold
d. 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

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 price
of 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 2,200,000
d. 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. Mean
b. 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

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. 2.143589
b. 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