TX REAL ESTATE EXAM PREP-MATH
PROBLEMS (100% VERIFIED)
An acre is how many Sqft? - ANSWER-1 Acre= 43,560 SQFT.
* A section = 640 acres*
The total commission a brokerage firm was paid was $33,500. The firm was paid 7%
on the first $200,000, 6% on the next $200,000 and 5% on the remainder. What was
the sales price of the property? - ANSWER-$550,000
Sales Price Calculation:
$200,000 x 7% = $14,000. $200,000 x 6% = $12,000.
$14,000 + $12,000 = $26,000. $33,500 - $26,000 = $7,500.
$7,500 ÷ 5% = $150,000.
$200,000 + $200,000 + $150,000 = $550,000
Agent Carrie received $937.50 as commission for a referral fee. The listing agent
paid 25% of her commission for the referral. The total commission paid was 6%,
which was split equally between the listing and selling brokerage firms. If the listing
agent was paid 50% of her firm's commission, what was the sale price of the
property? - ANSWER-$250,000
Property Sale Price Calculation:
$937.50 ÷ 25% = $3,750. $3,750 ÷ 50% = $7,500.
$7,500 ÷ 3% = $250,000
When Branham brought his property he had a 20% down payment and secured a 30
year loan at 7% interest. If his first month's interest was $787.50, how much did he
pay for the property? - ANSWER-$168,750
Calculation:
$787.50 x 12 = $9,450. $9,450 ÷ 7% = $135,000.
$135,000 ÷ 80% = $168,750
The S1/2 of the NE1/4 and the NW1/4 of the SE1/4 would contain ? - ANSWER-
5,227,200 square feet
Calculation:
640 ÷ 4 ÷ 2 = 80 acres. 640 ÷ 4 ÷ 4 = 40 acres. 80 acres + 40 acres = 120 acres.
120 acres x 43,560 = 5,227,200 square feet
A lot that measures 475' x 525' sold for $275,000. What was the cost per front foot? -
ANSWER-$578.947
Calculation:
, $275,000 ÷ 475 = $578.947
A lot that measures 475' x 525' sold for $275,000. What was the cost per acre? -
ANSWER-$48,036
Calculation:
475 x 525 = 249,375 square feet. 249,375 ÷ 43,560(acre) = 5.7248 acres.
$275,000 ÷ 5.7248 = $48,036
The market value of a property is $140,000. The owners pay $144.375 in monthly
property taxes, or $2.75 per $100. What is the assessment rate? - ANSWER-.45 or
45%
Calculation:
$2.75 ÷ $100 = .0275
$144.375 x 12 = $1732.50
$1,732.50 ÷ .0275 = $63,000
$63,000 ÷ $140,000 = .45 or 45%
The borrowers negotiated a $125,000 for 20 years at 7% interest. Their monthly
principal and interest payment is $969.12. How much interest will the buyers pay of
the life of the loan? - ANSWER-$107,588.80 (interest paid)
Calculation:
$969.12 per month x 12 x 20 years = $232,588.80(Principal and Interest)
$232,588.80(P&I) - 125,000(Loan) = $107,588.80(Interest paid over 20 years)
Measurements of a driveway are 24' x 36'. How much would it cost to replace the
driveway if a concrete slab 4" thick cost $15.00 a cubic yard to install and the cost of
labor amounted to $272.00 over and above the cost of the concrete? - ANSWER-
Answer- $432.00
How to Calculate:
First, convert the 4" into 1/3 foot. Next, calculate the cubic feet. 24' x 36' x 1/3' = 288
cubic feet. Convert the cubic feet into cubic yards. Remember, there are 27 cubic
feet in 1 cubic yard. 288 cubic feet / 27 cubic feet = 10.67 cubic yards. The cost of
the concrete is $160 (10.67 cubic yards x $15.00/cubic yard). The labor is $272, so
the total cost to replace the driveway is $432.00.
Mr. Stewart has an investment in a 20-unit apartment building which is adjacent to a
freeway. Because of its proximity to the freeway, the owner lost $150 per month rent.
If the capitalization rate were set at 8%, what would be the loss in value to the
property? - ANSWER-Answer- $22,500
Calculation:
12 x $150 = $1,800 divided by 8% = $22,500.
PROBLEMS (100% VERIFIED)
An acre is how many Sqft? - ANSWER-1 Acre= 43,560 SQFT.
* A section = 640 acres*
The total commission a brokerage firm was paid was $33,500. The firm was paid 7%
on the first $200,000, 6% on the next $200,000 and 5% on the remainder. What was
the sales price of the property? - ANSWER-$550,000
Sales Price Calculation:
$200,000 x 7% = $14,000. $200,000 x 6% = $12,000.
$14,000 + $12,000 = $26,000. $33,500 - $26,000 = $7,500.
$7,500 ÷ 5% = $150,000.
$200,000 + $200,000 + $150,000 = $550,000
Agent Carrie received $937.50 as commission for a referral fee. The listing agent
paid 25% of her commission for the referral. The total commission paid was 6%,
which was split equally between the listing and selling brokerage firms. If the listing
agent was paid 50% of her firm's commission, what was the sale price of the
property? - ANSWER-$250,000
Property Sale Price Calculation:
$937.50 ÷ 25% = $3,750. $3,750 ÷ 50% = $7,500.
$7,500 ÷ 3% = $250,000
When Branham brought his property he had a 20% down payment and secured a 30
year loan at 7% interest. If his first month's interest was $787.50, how much did he
pay for the property? - ANSWER-$168,750
Calculation:
$787.50 x 12 = $9,450. $9,450 ÷ 7% = $135,000.
$135,000 ÷ 80% = $168,750
The S1/2 of the NE1/4 and the NW1/4 of the SE1/4 would contain ? - ANSWER-
5,227,200 square feet
Calculation:
640 ÷ 4 ÷ 2 = 80 acres. 640 ÷ 4 ÷ 4 = 40 acres. 80 acres + 40 acres = 120 acres.
120 acres x 43,560 = 5,227,200 square feet
A lot that measures 475' x 525' sold for $275,000. What was the cost per front foot? -
ANSWER-$578.947
Calculation:
, $275,000 ÷ 475 = $578.947
A lot that measures 475' x 525' sold for $275,000. What was the cost per acre? -
ANSWER-$48,036
Calculation:
475 x 525 = 249,375 square feet. 249,375 ÷ 43,560(acre) = 5.7248 acres.
$275,000 ÷ 5.7248 = $48,036
The market value of a property is $140,000. The owners pay $144.375 in monthly
property taxes, or $2.75 per $100. What is the assessment rate? - ANSWER-.45 or
45%
Calculation:
$2.75 ÷ $100 = .0275
$144.375 x 12 = $1732.50
$1,732.50 ÷ .0275 = $63,000
$63,000 ÷ $140,000 = .45 or 45%
The borrowers negotiated a $125,000 for 20 years at 7% interest. Their monthly
principal and interest payment is $969.12. How much interest will the buyers pay of
the life of the loan? - ANSWER-$107,588.80 (interest paid)
Calculation:
$969.12 per month x 12 x 20 years = $232,588.80(Principal and Interest)
$232,588.80(P&I) - 125,000(Loan) = $107,588.80(Interest paid over 20 years)
Measurements of a driveway are 24' x 36'. How much would it cost to replace the
driveway if a concrete slab 4" thick cost $15.00 a cubic yard to install and the cost of
labor amounted to $272.00 over and above the cost of the concrete? - ANSWER-
Answer- $432.00
How to Calculate:
First, convert the 4" into 1/3 foot. Next, calculate the cubic feet. 24' x 36' x 1/3' = 288
cubic feet. Convert the cubic feet into cubic yards. Remember, there are 27 cubic
feet in 1 cubic yard. 288 cubic feet / 27 cubic feet = 10.67 cubic yards. The cost of
the concrete is $160 (10.67 cubic yards x $15.00/cubic yard). The labor is $272, so
the total cost to replace the driveway is $432.00.
Mr. Stewart has an investment in a 20-unit apartment building which is adjacent to a
freeway. Because of its proximity to the freeway, the owner lost $150 per month rent.
If the capitalization rate were set at 8%, what would be the loss in value to the
property? - ANSWER-Answer- $22,500
Calculation:
12 x $150 = $1,800 divided by 8% = $22,500.
