Colorado Real Estate Math Questions and Answers 100% Pass

Colorado Real Estate Math Questions and Answers 100% Pass A real estate agent is paid $200.00 a month salary and a 2 ½ % commission on everything sold over $150,000 in one year. If the agent makes $22,000 one year. How much did the agent sell? 784000 634000 934000 880000 - Correct Answer ️️ -934000 $200 X 12 = $2,400 (total salary); $22,000 - $2,400 = $19,600 (total commission sales) / .025 (commission rate) = $784,000 (sales above $150,000 that earned the $19,600 commission) + $150,000 = $934,000 (Total Sales) A $75,000 loan requires a $1,875 discount to be paid by seller and a $375 discount to be paid by the buyer. This is how many total discount points? 2 2.5 3 3.5 - Correct Answer ️️ -3 $1875 + $375 = $2,250. I / V = R. $2,250 / $75,000 = .03 An investor earned $27,500 on a $375,000 investment. What is the rate of return? 0.115 0.073 0.136 0.094 - Correct Answer ️️ -0.073 $27,500 / $375,000 = 7.3% If the scale drawing for a lot is 3 inches by 4 inches and the actual lot is 90 feet x 120 feet, how many feet would be represented by 5 1/4 inches? 210.00 feet 157.50 feet 127.50 feet 180.00 feet - Correct Answer ️️ -157.50 feet 90' / 3" or 120' / 4" = 30 ' per inch; 30' per inch X 5.25" = 157.5' As a property manager, you have an agreement that your fee will be 8% on the first $150,000 gross rent, 5% on the next $100,000, and 2.5% on everything over the $250,000. If last year's gross rent was $417,500 what was the management fee? 4187.5 9187.5 21187.5 16187.5 - Correct Answer ️️ -21187.5 First calculate the commission earned on the first tier - ($150,000 X .08 = $12,000 commission) then calculate the commission on the second tier - ($100,000 X .05 = $5,000) then calculate the amount of the remaining gross rent over $250,000 - ($417,500 - ($150,000 + $100,000) = $167,500) then calculate the commission on the remaining amount ($167,500 X .025 = $4,187.50). Add the commissions together $12,000 + $5,000 + $4,187.50 = $21,187.50 total management fee A loan company will provide a loan to Bill and Hillary for 75% of the appraised value of their home. The interest rate is 10.5%. The first monthly interest payment is $820. The bank requires 4 discount points (hint: a discount point is 1% of the loan amount) to obtain this interest rate. How much will the discount points cost? 2840 3749 5575 9714 - Correct Answer ️️ -3749 $820 x 12 = $9,840 annual interest paid. $9,840 / .105 (annual interest converted to a decimal) = $93,714.28 Total Loan Amount. $93,714 x .04 (A discount point is 1% of the loan amount - you have 4 of them) = $3.749.57 in Discount Points Mr. Baker sold his house for $27,000, which is a 10% loss over what he originally paid for it. What did he pay for the house originally? 28000 30000 33000 35000 - Correct Answer ️️ -30000 How many 50-foot by 110-foot lots could be obtained from an acre of l