California Real Estate Practice Exam

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Prepare effectively for the California Real Estate Exam with comprehensive quizzes, flashcards, and detailed explanations. Enhance your knowledge of real estate principles, laws, and regulations essential for passing the exam.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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Payment of three points on a note whose rate is 6% will increase the yield to the lender to

6%
6 1/8%
6 3/8%
6 1/2%

The correct answer is: 6 3/8%

Increasing the payment on a loan can increase the yield to the lender. In this case, the rate of the note is 6% and increasing the payment by three points will result in a yield of 6 3/8%. This is because three points is equivalent to 0.75%, which added to the original 6% rate gives a new rate of 6.75%. To find the percentage yield, we subtract the original rate of 6% from the new rate of 6.75%, giving a yield of 0.75% or 6 3/8%. Options A and B are incorrect because they do not take into account the increase in payment, resulting in a lower yield. Option D is also incorrect because it is too high of a rate for an increase of only three points.