Free Practice Exam
Real Estate Math Practice Exam
This exam contains 15 questions that cover 7 major topic areas:
 Appraisal
 Appreciation
 Commission
 Geometry
 Mortgages
 Proration
 Taxes
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Question 1
Karen is considering buying a 8unit apartment building. The NOI is $85000. If she wants a 15% return on her investment, what is the maximum price she should offer?$56,667 $1,275 $127,500 $566,667
Question 1 Explanation:Value = NOI / Cap rate = $8,500 / .15 = $56,667
This is an Appraisal question.Question 2
Marsha buys a property and closes on August 1. The seller prepaid the annual real estate taxes of $5000 in advance. How much will Marsha owe the seller in real estate taxes at closing?$2916.69Hint: Not quite. How many months is Martha responsible for? $945.20 $2083.33 $416.67Hint: You're on the right track, but this isn't the answer.
Question 2 Explanation:Calculate monthly tax = $5000 / 12 = $416.67
Marsha is responsible for 5 months, so she owes the seller = $416.67 x 5 = $2083.33
This is a Proration question.Question 3
An agent seller a property for $415,000 and receives a commission of $22,825. What was her commission rate?5.5% 18% 55% 180%
Question 3 Explanation:Commission rate = Commission Received / Sales Price = 0.055 = 5.5%
This is a Commission question.Question 4
Gina wants to replace the carpet in her bedroom. The size of her bedroom is 12 foot by 10 foot and the cost to replace carpet is $3.00 / sf. How much will it cost Gina to replace the carpet?$120Hint: This is the area, but we need the cost. $360 $500 $40
Question 4 Explanation:Calculate total sf = Area = Length x Width = 10 feet x 12 feet = 120 sf
Calculate Cost = 120 sf x $3/sf = $360
This is a Geometry question.Question 5
An agent seller a property for $650,000 and makes a commission of 6%, which is split 70/30 with his broker. How much does the agent receive?$27,300 $39,000Hint: Not quite. What about the split? $65,000 $11,700Hint: Not quite. The agent gets 70% and the broker gets 30%.
Question 5 Explanation:Calculate total commission = $650,000 x .06 = $39,000
Calculate agent percentage = $39,000 x .7 = $27,300
This is a Commission question.Question 6
How much is the PI payment on a 7.25%, $200,000 mortgage, amortized over 30 years using the amortization factor of 6.82?$200 $1,324 $1,234 $662
Question 6 Explanation:Calculate payment = Mortgage Factor x Loan Amount in Thousands = 6.62 x 200 = $1,324
This is a Mortgage question.Question 7
Ben sold his townhome on March 12. The property is subject to an HOA fee of $355 per month, which Ben prepaid for the month of March. How much does the buyer owe Ben in HOA fees? (Assume a 30day month)$11.33Hint: Almost. This is the daily rate. $203.94 $177.50 $355
Question 7 Explanation:Calculate daily rate = $355 / 30 = $11.33 / day
The buyer owes (3012 = 18 days) = $11.33 x 18 = $203.94
This is a Proration question.Question 8
A 5year old 2,100 sf house that has a replacement cost of $65/sf. The land is valued at $125,000 and the depreciation rate is 2% per year. What is the value of the property using the cost approach?$136,500Hint: This is only the replacement cost. $2,740 $13,650Hint: Close, but not quite. $247,850
Question 8 Explanation:Replacement cost = 65 x 2100 = $136,500.
Annual Depreciation = $136,500 x .02 = $2730
Depreciation over 5 years = $13,650
Value = Replacement Cost + Land Value = Depreciation = $247,850
This is an Appraisal question.Question 9
How many 5,000sf lots can a developer create from a 10acre piece of land?435,600 lots 43,560 lots 87 lots 187 lots
Question 9 Explanation:Covert acres to sf = 10 acres x 43560 sf / acre = 435,600 sf.
Divide by 5,000 sf to find number of lots = 87 lots
This is a Geometry question.Question 10
Ken bought a condo 3 years ago for $250,000. If the area depreciated at 5% per year, what is the value of his house today?$12,500Hint: Not quite. This is the annual depreciation. $37,500Hint: Not quite. This is the total depreciation. $212,500 $237,500
Question 10 Explanation:Calculate annual depreciation = $250,000 x .05 = $12,500.
Calculate total depreciation = $12,500 x 3 years = $37,500.
Calculate value = $250,000  $37,500 = $212,500.
This is an Appreciation question.Question 11
Dan bought his home 10 years ago for $175,000. He sold his home last month for $275,00. What is the annual rate of appreciation?100% 57%Hint: This is the total appreciation. We're looking for the annual appreciation. 5.7% 157%
Question 11 Explanation:Total Appreciation = $275,000  $175,000 = $100,000
Total % Appreciation = Total Appreciation / Original Amount = $100,000 / $175,000 = .57
Annual appreciation = .57 / 10 years = .057 = 5.7%
This is an Appreciation question.Question 12
Tom sells his house for $475,000 in Loudoun County. The grantor tax is $0.50 per $500. What is the grantor tax?$2,375 $475 $4,750 $500
Question 12 Explanation:Calculate Grantor Tax = $475,000 x .5 /500 = $475
This is a Taxes question.Question 13
Sally buys a $375,000 house in Ludoun County. The state recordation tax is $0.25 per $100. The county tax is 1/3 of the state tax. How much recordation tax will Sally pay?$1000 $1250 $937.50Hint: This is only part of the answer $312.50Hint: This is only part of the answer
Question 13 Explanation:Calculate state recordation tax =
$375,000 x .25 / 100 = $937.50
State tax = 1/3 * $937.50 = $312.50
Total Tax = $1250
This is a Taxes question.Question 14
How much total interest is paid on a $150,000 loan amortized over 15 years at 8% interest, using a factor of 9.56?$1434Hint: Getting close. This is only the monthly mortgage payment $258,120Hint: Almost. This is the total amount of the loan. We're only looking for the interest. $150,000 $108,120
Question 14 Explanation:Calculate Mortgage Payment = 150 x 9.56 = $1434
Calculate total cost of loan = $1434 x 15 years x 12 months/year = $258,120
Subtract principal amount = $258,120  $150,000 = $108,120
This is a Mortgage question.Question 15
A broker receives a commission check for $9000. If her commission rate is 6%, what was the sales price of the home?$540Hint: The sales prices is greater than the commission. $150,000 $540,000 $200,000
Question 15 Explanation:Sales price = Commission Received / Commission Rate = $150,000
This is a Commission question.
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Real Estate Math Practice Exam
This exam contains 15 questions that cover 7 major topic areas: Appraisal
 Appreciation
 Commission
 Geometry
 Mortgages
 Proration
 Taxes
You scored %%SCORE%% out of %%TOTAL%%.
Get access to over 100 Real Estate Math Questions organized by category!
Your answers are highlighted below.
Question 1 
$56,667  
$1,275  
$127,500  
$566,667 
This is an Appraisal question.
Question 2 
$2916.69 Hint: Not quite. How many months is Martha responsible for?  
$945.20  
$2083.33  
$416.67 Hint: You're on the right track, but this isn't the answer. 
Marsha is responsible for 5 months, so she owes the seller = $416.67 x 5 = $2083.33
This is a Proration question.
Question 3 
5.5%  
18%  
55%  
180% 
This is a Commission question.
Question 4 
$120 Hint: This is the area, but we need the cost.  
$360  
$500  
$40 
Calculate Cost = 120 sf x $3/sf = $360
This is a Geometry question.
Question 5 
$27,300  
$39,000 Hint: Not quite. What about the split?  
$65,000  
$11,700 Hint: Not quite. The agent gets 70% and the broker gets 30%. 
Calculate agent percentage = $39,000 x .7 = $27,300
This is a Commission question.
Question 6 
$200  
$1,324  
$1,234  
$662 
This is a Mortgage question.
Question 7 
$11.33 Hint: Almost. This is the daily rate.  
$203.94  
$177.50  
$355 
The buyer owes (3012 = 18 days) = $11.33 x 18 = $203.94
This is a Proration question.
Question 8 
$136,500 Hint: This is only the replacement cost.  
$2,740  
$13,650 Hint: Close, but not quite.  
$247,850 
Annual Depreciation = $136,500 x .02 = $2730
Depreciation over 5 years = $13,650
Value = Replacement Cost + Land Value = Depreciation = $247,850
This is an Appraisal question.
Question 9 
435,600 lots  
43,560 lots  
87 lots  
187 lots 
Divide by 5,000 sf to find number of lots = 87 lots
This is a Geometry question.
Question 10 
$12,500 Hint: Not quite. This is the annual depreciation.  
$37,500 Hint: Not quite. This is the total depreciation.  
$212,500  
$237,500 
Calculate total depreciation = $12,500 x 3 years = $37,500.
Calculate value = $250,000  $37,500 = $212,500.
This is an Appreciation question.
Question 11 
100%  
57% Hint: This is the total appreciation. We're looking for the annual appreciation.  
5.7%  
157% 
Total % Appreciation = Total Appreciation / Original Amount = $100,000 / $175,000 = .57
Annual appreciation = .57 / 10 years = .057 = 5.7%
This is an Appreciation question.
Question 12 
$2,375  
$475  
$4,750  
$500 
This is a Taxes question.
Question 13 
$1000  
$1250  
$937.50 Hint: This is only part of the answer  
$312.50 Hint: This is only part of the answer 
State tax = 1/3 * $937.50 = $312.50
Total Tax = $1250
This is a Taxes question.
Question 14 
$1434 Hint: Getting close. This is only the monthly mortgage payment  
$258,120 Hint: Almost. This is the total amount of the loan. We're only looking for the interest.  
$150,000  
$108,120 
Calculate total cost of loan = $1434 x 15 years x 12 months/year = $258,120
Subtract principal amount = $258,120  $150,000 = $108,120
This is a Mortgage question.
Question 15 
$540 Hint: The sales prices is greater than the commission.  
$150,000  
$540,000  
$200,000 
This is a Commission question.
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