Real Estate Math Practice Test Questions And Correct Answers 2024 Update Graded A+
Questions and Answers
• 1.
A closing cost of two and one half discount points involved in the purchase of a $184,000 property on which there is a mortgage with a 75% loan to value ratio would equal which of the following
amounts:
- A.
$3,450
- B.
$3,540
- C.
$4,600
- 1 / 3
$138,000
Correct Answer
A. $3,450
Explanation The closing cost of two and one half discount points on a $184,000
property with a 75% loan to value ratio can be calculated as follows:
First, calculate the loan amount by multiplying the property value by the
loan to value ratio: $184,000 * 0.75 = $138,000.
Next, calculate the discount points by multiplying the loan amount by the
percentage of discount points: $138,000 * 2.5% = $3,450.
Therefore, the closing cost would equal $3,450.
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• 2.
A broker shares the commission that is earned on the sale of real
estate with a salesperson in a ratio of 3:2, respectively. If the
salesperson sells a property for $148,000, on which the office commissions are 5% of the sale price, then how much more would the broker earn than the salesperson?
- A.
$1,576
- B.
$1,480
- C.
$1,960
- D.
$7,400 2 / 3
Correct Answer
B. $1,480
• 3.
If a property is assessed at $5,200 and the tax rate is 84 mills, the
monthly tax is:
- A.
$364.40
- B.
$436.80
- C.
$36.40
- D.
$43.80
Correct Answer
C. $36.40
Explanation To calculate the monthly tax, we need to multiply the assessed value of the property ($5,200) by the tax rate (84 mills). Since 1 mill is equal to 0.001, we can convert the tax rate to 0.084. Multiplying $5,200 by 0.084 gives us $436.80. However, the question asks for the monthly tax, so we divide $436.80 by 12 to get $36.40. Therefore, the correct answer is
$36.40.
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• 4.
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