REAL ESTATE MATH QUIZ QUESTIONS AND
100% CORRECT ANSWERS
\Q\.Real Estate Commission:
A real estate sales associate's agreement with their broker gives the sales
associate 60% of all commissions earned by the firm. If a property sells for
$145,000 and the firm earns a 6% commission, what would be the sales
associate's share?
A. $3,480
B. $5,220
C. $8,700
D. $9,870 - ANSWERS✔-B.
$145,000 x 0.6 commission = $8,700.
60% of $8,700 = $5,220.
\Q\.Net listing:
A seller wants to net $50,000 after paying off a loan of $65,000 and a real estate
commission of 5%. Which list price would give the seller his or her net?
,A. $106,500
B. $120,750
C. $120, 950
D. $121, 053 - ANSWERS✔-D.
$50,000 (seller's net) + $65,000 (loan payoff amount)
= $115,000 (total)
100% - 5% (commission rate) = 95% (or .95)
$115,000 (total) ÷ .95 = $121,052.63 (listing price)
\Q\.Profit or Loss:
A property was purchased for $140,000 and later sold for $156,500. Which
represents the profit percentage earned in this transaction?
A. 5%
B. 8%
C. 10%
D. 12% - ANSWERS✔-D.
Divide what is made by what is paid.
, $156,500 (purchase price) - $140,000 (sales price)
= $16,500 (amount made).
$16,500 (amount made) ÷ $140,000 (amount paid) = .117857 or 12%
\Q\.Principal & interest with amortized or level payment loan:
How much of the second loan payment would apply to principal if the loan was
originally $175,000 at 6% over 30 years with a monthly payment of $1,049.21?
A. $174.21
B. $175.08
C. $874.13
D. $875 - ANSWERS✔-B.
Formula:
Principal x Rate x Time (in months) = Interest.
$175,000 (initial loan) x 6% (interest) = $10,500 (12 mo. interest)
$10,500 ÷ 12 = $875 (1st month interest)
$1,049.21 (payment) - $875 (interest part) = $174.21 (1st mo. principal part).
100% CORRECT ANSWERS
\Q\.Real Estate Commission:
A real estate sales associate's agreement with their broker gives the sales
associate 60% of all commissions earned by the firm. If a property sells for
$145,000 and the firm earns a 6% commission, what would be the sales
associate's share?
A. $3,480
B. $5,220
C. $8,700
D. $9,870 - ANSWERS✔-B.
$145,000 x 0.6 commission = $8,700.
60% of $8,700 = $5,220.
\Q\.Net listing:
A seller wants to net $50,000 after paying off a loan of $65,000 and a real estate
commission of 5%. Which list price would give the seller his or her net?
,A. $106,500
B. $120,750
C. $120, 950
D. $121, 053 - ANSWERS✔-D.
$50,000 (seller's net) + $65,000 (loan payoff amount)
= $115,000 (total)
100% - 5% (commission rate) = 95% (or .95)
$115,000 (total) ÷ .95 = $121,052.63 (listing price)
\Q\.Profit or Loss:
A property was purchased for $140,000 and later sold for $156,500. Which
represents the profit percentage earned in this transaction?
A. 5%
B. 8%
C. 10%
D. 12% - ANSWERS✔-D.
Divide what is made by what is paid.
, $156,500 (purchase price) - $140,000 (sales price)
= $16,500 (amount made).
$16,500 (amount made) ÷ $140,000 (amount paid) = .117857 or 12%
\Q\.Principal & interest with amortized or level payment loan:
How much of the second loan payment would apply to principal if the loan was
originally $175,000 at 6% over 30 years with a monthly payment of $1,049.21?
A. $174.21
B. $175.08
C. $874.13
D. $875 - ANSWERS✔-B.
Formula:
Principal x Rate x Time (in months) = Interest.
$175,000 (initial loan) x 6% (interest) = $10,500 (12 mo. interest)
$10,500 ÷ 12 = $875 (1st month interest)
$1,049.21 (payment) - $875 (interest part) = $174.21 (1st mo. principal part).
