Real Estate Exam Flashcards: Real Estate Math

Question 1

LTV 85% on a $400,000 purchase — loan and down payment?

Accepted Answer

Loan $340,000; down payment $60,000 (15%). LTV% + down% = 100%.

Question 2

A lot 150' × 290.4' is how many acres?

Accepted Answer

43,560 sq ft ÷ 43,560 = exactly 1 acre. (150 × 290.4 = 43,560.)

Question 3

Building replacement cost $400,000, 40-year life, effective age 10, land $110,000 — indicated value?

Accepted Answer

Depreciation $10,000/yr × 10 = $100,000. ($400,000 − $100,000) + $110,000 = $410,000.

Question 4

Seller wants to NET $188,000 after a 6% commission. Minimum price?

Accepted Answer

$188,000 ÷ 0.94 = $200,000. Divide by (1 − rate) — never add 6% to the net.

Question 5

Transfer tax $0.70 per $500, price $256,300 — tax due?

Accepted Answer

256,300 ÷ 500 = 512.6 → round UP to 513 × $0.70 = $359.10. Partial increments always round up.

Question 6

Home bought $250,000, sold $290,000 — percent profit?

Accepted Answer

($290,000 − $250,000) ÷ $250,000 = 16%. Percent change always divides by the ORIGINAL value.

Question 7

NOI $96,000, price $1,200,000 — cap rate?

Accepted Answer

8% ($96,000 ÷ $1,200,000). Rate = Income ÷ Value.

Question 8

How many square feet in an acre? Feet in a mile? Acres in a section?

Accepted Answer

43,560 sq ft · 5,280 ft · 640 acres (1 square mile). The three numbers to memorize cold.

Question 9

$240,000 loan at 6.5% — first month's interest?

Accepted Answer

$240,000 × 0.065 ÷ 12 = $1,300. Monthly interest = balance × annual rate ÷ 12.

Question 10

Taxes $2,920/year (365-day year), closing April 1, taxes in arrears. Seller's debit?

Accepted Answer

Daily $8 × 90 days (Jan 1–Mar 31) = $720 debit seller / credit buyer.

More flashcards