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TEXAS PRINCIPLES OF REAL ESTATE II 2025
UPDATED ACTUAL EXAM WITH CORRECT
SOLUTIONS.
Mixed Numbers - correct answer- A number containing both a
whole number and a fraction (examples: 1⅓; 9⅞)
Improper Fractions - correct answer- a fraction with its
numerator equal to or greater than its denominator
Commission Calculation - correct answer- Sales price X rate of
commission = total commission
Solving for the Commission Rate - correct answer- Commission
Rate = Commission ÷ Price
Solving for the Property's Price - correct answer- Price =
Commission ÷ Commission Rate
Profit - correct answer- Profit (or Loss) = Selling price - Original
cost
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Profit Percentage - correct answer- Percentage of profit = Profit
÷ Original cost
Profit Margin - correct answer- Profit margin = Profit ÷ Selling
price
Interest - correct answer- the price paid for the use of borrowed
money
3 types of interest calculations - correct answer- Simple
interest, add-on interest, and compound interest
Simple interest - correct answer- Interest = principal x rate x
time
Add-on interest - correct answer- loan amount x contracted
interest rate x number of payments
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Add-on interest APR - correct answer- APR = 2 x number of
payment periods in one year x total financing charges ÷
(principal, or amount borrowed x (number of scheduled
payments +1)
Compound interest - correct answer- interest which is
computed on the principal amount plus the accrued interest.
Compound Interest Formula - correct answer- Compound
amount = Initial deposit (1 + Interest rate)n
Points - correct answer- a one-time service charge to the
borrower for making the loan
Two types of points - correct answer- origination fee and
discount points
Loan-to-Value Ratio (LTV) - correct answer- expresses the
relationship between a property's purchase price and its loan
amount.
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Loan-to-Value formula - correct answer- LTV ratio = (Loan
amount ÷ Value)
Area of a rectangle - correct answer- Area = length x width
Area of a square - correct answer- Area = side x side
Area of a triangle - correct answer- Area = ½ base x height
Perimeter - correct answer- a lot or other shape is the sum of
the length of all its sides.
Acre - correct answer- A measure of land equal to 43,560
square feet.
Hectare - correct answer- is equal to 10,000 square meters or
approximately 2.47 acres.
TEXAS PRINCIPLES OF REAL ESTATE II 2025
UPDATED ACTUAL EXAM WITH CORRECT
SOLUTIONS.
Mixed Numbers - correct answer- A number containing both a
whole number and a fraction (examples: 1⅓; 9⅞)
Improper Fractions - correct answer- a fraction with its
numerator equal to or greater than its denominator
Commission Calculation - correct answer- Sales price X rate of
commission = total commission
Solving for the Commission Rate - correct answer- Commission
Rate = Commission ÷ Price
Solving for the Property's Price - correct answer- Price =
Commission ÷ Commission Rate
Profit - correct answer- Profit (or Loss) = Selling price - Original
cost
,2 | Page
Profit Percentage - correct answer- Percentage of profit = Profit
÷ Original cost
Profit Margin - correct answer- Profit margin = Profit ÷ Selling
price
Interest - correct answer- the price paid for the use of borrowed
money
3 types of interest calculations - correct answer- Simple
interest, add-on interest, and compound interest
Simple interest - correct answer- Interest = principal x rate x
time
Add-on interest - correct answer- loan amount x contracted
interest rate x number of payments
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Add-on interest APR - correct answer- APR = 2 x number of
payment periods in one year x total financing charges ÷
(principal, or amount borrowed x (number of scheduled
payments +1)
Compound interest - correct answer- interest which is
computed on the principal amount plus the accrued interest.
Compound Interest Formula - correct answer- Compound
amount = Initial deposit (1 + Interest rate)n
Points - correct answer- a one-time service charge to the
borrower for making the loan
Two types of points - correct answer- origination fee and
discount points
Loan-to-Value Ratio (LTV) - correct answer- expresses the
relationship between a property's purchase price and its loan
amount.
, 4 | Page
Loan-to-Value formula - correct answer- LTV ratio = (Loan
amount ÷ Value)
Area of a rectangle - correct answer- Area = length x width
Area of a square - correct answer- Area = side x side
Area of a triangle - correct answer- Area = ½ base x height
Perimeter - correct answer- a lot or other shape is the sum of
the length of all its sides.
Acre - correct answer- A measure of land equal to 43,560
square feet.
Hectare - correct answer- is equal to 10,000 square meters or
approximately 2.47 acres.
