CA Real Estate Real Estate Mathematics 2

Question 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?

Accepted Answer

$900

Answer

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

Question 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?

Accepted Answer

$1,458.33

Answer

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

Question 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?

Accepted Answer

$4,000

Answer

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

Question 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?

Accepted Answer

$9,000

Answer

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

Question 5

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

Accepted Answer

$204,000

Answer

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

CA Real Estate - California Real Estate Exam Practice Test

CA Real Estate - California Real Estate Exam Practice Test

CA Real Estate Real Estate Mathematics 2