BC Real Estate Trading Services Course Real Estate Math and Calculations 2

Question 1

A property sells for $875,000. The commission rate is 3.5% on the first $100,000 and 1.5% on the balance. What is the total commission?

Accepted Answer

$14,875

Answer

$16,250

Answer

$3,500

Answer

$13,125

Question 2

A buyer purchases a property for $650,000. What is the total Property Transfer Tax (PTT) payable in BC?

Accepted Answer

$11,500

Answer

$9,500

Answer

$13,000

Answer

$6,500

Question 3

An investor buys a rental property for $480,000 and receives annual gross rental income of $30,000. What is the gross income multiplier (GIM)?

Accepted Answer

16.0

Answer

6.0

Answer

62.5%

Answer

8.0

Question 4

A rectangular lot is 45 metres wide by 30 metres deep. What is the lot area in square metres?

Accepted Answer

1,350 sq m

Answer

150 sq m

Answer

750 sq m

Answer

300 sq m

Question 5

A property has a Net Operating Income (NOI) of $42,000 per year. If the capitalization rate is 6%, what is the property's estimated value?

Accepted Answer

$700,000

Answer

$252,000

Answer

$420,000

Answer

$2,520,000

Question 6

A home listed at $795,000 sells at a 4% discount. What is the final sale price?

Accepted Answer

$763,200

Answer

$771,800

Answer

$826,800

Answer

$731,400