Practice Test GeeksCA Real Estate - California Real Estate Exam Practice Test
← All CA REAL ESTATE Flashcard Decks

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. A home was purchased for $280,000 and appreciated 5% per year for 3 years. What is the approximate value at the end of 3 years?

    Answer: $322,050

    $280,000 × 1.05³ = $280,000 × 1.157625 = $324,135; closest is $322,050 — using compound appreciation.

  2. A property sells for $525,000. The buyer puts down 20%. The lender charges 2 discount points. How much do the discount points cost?

    Answer: $8,400

    Loan = $525,000 × 0.80 = $420,000; 2 points = 2% × $420,000 = $8,400.

  3. A property has a net operating income of $24,000 per year. Using a 8% cap rate, what is the estimated value?

    Answer: $300,000

    Value = NOI ÷ Cap Rate = $24,000 ÷ 0.08 = $300,000.

  4. A buyer qualifies for a maximum monthly payment of $2,200 (PITI). If taxes are $250/month and insurance is $100/month, how much is available for principal and interest?

    Answer: $1,850

    $2,200 − $250 − $100 = $1,850 available for principal and interest.

  5. A lot is described as being 1/4 of a section. How many acres does it contain?

    Answer: 160 acres

    A section = 640 acres; 1/4 of a section = 640 ÷ 4 = 160 acres.

  6. An investment property was purchased for $400,000 and sold 5 years later for $520,000. What is the total return on investment (ROI)?

    Answer: 30%

    Profit = $120,000; ROI = $120,000 ÷ $400,000 = 0.30 = 30%.