HP 12c Calculator Skills For Real Estate Sample Test Questions

HP 12c Calculator Skills For Real Estate Sample Test Questions

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The HP 12c Calculator Skills Free Self-Study Guide has over a dozen examples of how to apply the skills it teaches. These are additional sample questions to help you test your skills in preparation for the Certification Test. Answers appear below the final question.

1. A real estate developer begins a development project after acquiring $2.4MM in total cash funding. Over the course of Year 1, the following cash expenses are incurred:

  • $750,000
  • $1,050,000
  • $65,000
  • $32,000.

Assuming a discount rate of 8%, what is the Present Value of the remaining balance as of the end of Year 1?

 

2. If a $7,000 loan is taken out for 90 days and the money is lent at 5.00% simple interest, what is the amount of interest accrued in 90 days and how much is owed assuming the interest is calculated on a 365-day basis? What is the amount on a 360-day basis?

 

3. A property is purchased in cash for $100,000. The asset will be held for 4 years. The investor has projected the project cash flow as follows:

  • Year 0, -100,000
  • Year 1,-1,000
  • Year 2, 19,000
  • Year 3, 21,000
  • Year 4, 210,000.

What is the IRR?

 

4. A property is purchased in cash for $100,000. The investor’s discount rate is 15%. The asset will be held for 5 years and sold for $170,000 at the end of the hold period. The investor has projected the project cash flow as follows:

  • Year 0, -100,000
  • Year 1, -1,000
  • Year 2, 9,000
  • Year 3, 11,000
  • Year 4, 8,000
  • Year 5, 170,000.

What is the NPV?

 

5. A lender charges 4 points to the borrower for the issuance of a $250,000 mortgage, amortized over 25 years, with monthly payments. The annual interest rate is 5.5%. What is the APR?

 

6. A lender issues a $100,000 mortgage. If the mortgage is amortized over 20 years at a 9% annual rate, what are the buyer’s monthly payments?

 

7. A mortgage lent at 8.75% with 20 years remaining on a 30 year term and a remaining balance of $88,332 is available for purchase. What purchase price will generate a 13% yield?


Answers: 1. $465,740.74, 2. $86.30 / $87.50, 3. 27.67%, 4. $2,262.48, 5. 5.92%, 6. $899.73, 7. $66,628