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Real Estate Mathematics Flashcards

6 cards from real CA REAL ESTATE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 Real Estate Mathematics flashcards as text

  1. Annual property taxes are $3,600. If closing occurs on April 1 (taxes paid in arrears), how much does the seller owe the buyer at closing for taxes?

    Answer: $900

    3 months (Jan–Mar) × $300/month = $900 owed to buyer for taxes accrued during seller's ownership.

  2. A monthly mortgage payment is $1,850. If the annual interest rate is 7% and the loan balance is $250,000, how much of the first payment goes toward interest?

    Answer: $1,458.33

    $250,000 × 0.07 ÷ 12 = $1,458.33 interest for the first month's payment.

  3. A property has a market value of $400,000 and an assessed value of 80% of market value. The tax rate is $1.25 per $100 of assessed value. What are the annual taxes?

    Answer: $4,000

    $400,000 × 0.80 = $320,000 assessed value; $320,000 ÷ 100 × $1.25 = $4,000.

  4. A salesperson earns 60% of the commission her broker receives. The broker receives 50% of the 6% total commission on a $500,000 sale. How much does the salesperson earn?

    Answer: $9,000

    $500,000 × 6% = $30,000 total; broker gets $15,000; salesperson gets 60% × $15,000 = $9,000.

  5. A rectangular building measures 40 feet by 60 feet. At $85 per square foot, what is the replacement cost?

    Answer: $204,000

    40 × 60 = 2,400 sq ft; 2,400 × $85 = $204,000.

  6. A loan of $180,000 has an LTV ratio of 80%. What is the purchase price of the property?

    Answer: $225,000

    Purchase price = Loan ÷ LTV = $180,000 ÷ 0.80 = $225,000.