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# 15 Real Estate Math Questions

1) A lot is 200 feet deep and 500 feet wide. How many square feet are
in the lot?

2) How many acres are in a lot that measures 100 feet deep and 200 feet
wide?

3) The county real estate property tax rate is \$ 0.87 per \$100 of assessed
value. If the assessed value is \$250,000, what is the annual county tax
bill?

4) If the annual real estate tax bill is \$3,000 and the tax rate is \$1.25 per
\$100 of assessed value, what is the assessed value?

5) What is the amount of excise tax the seller will pay in North Carolina
if the listing price was \$145,000 and the final sales price was
\$130,000? What will be the entry on the Closing Disclosure?

6) The listing firm and the selling firm will equally split the 6%
commission paid by the seller based on the final sales price. What
amount will each firm receive if the listing price was \$190,000 and the
sales price was \$189,000?
7) If the seller will pay a 5% commission, what will the seller receive
after paying the commission on a sales price of \$80,000?

8) What is the commission rate if the seller wants to net \$90,000 with a
sales price of \$100,000?

## 9) Percentage leases call for a fixed base monthly rent plus a

percentage of gross sales income exceeding a stated monthly or
annual amount.

## The lease requires a fixed amount of \$1,300 monthly plus 5% of

annual sales that exceeds \$160,000. What is the annual rent if
annual sales are \$250,000?

## 10) If a property manager receives a commission of 8% based on the

monthly rent, what is the annual commission if the office rents for
\$475 per month.

11) The buyer is putting 15% down on a property with a sales price of
\$90,000. What is the loan amount?
12) The lender is providing a loan that represents 90% of the sales price.
What is the borrower’s down payment if the sales price is \$200,000?

13) The borrower makes \$4,000 per month. If the lender allows a housing
debt ratio up to 30% of the borrower’s gross monthly income, what is
the maximum amount of housing debt allowed?

14) If the property sold for \$100,000, what is the percentage of gross
profit if the original sales price was \$80,000?

15) If the seller originally purchased the property for \$120,000, what was
the selling price if the seller had a 20% loss?
ANSWERS: 15 Real Estate Math Questions
1) A lot is 200 feet deep and 500 feet wide. How many square feet are
in the lot?
Answer: 200 x 500 = 100,000 square feet

2) How many acres are in a lot that measures 100 feet deep and 200 feet
wide?
Answer: 100 X 200 = 20,000 square feet
20,000 divided by 43,560 = 0.46 acres
3) The county real estate property tax rate is \$ 0.87 per \$100 of assessed
value. If the assessed value is \$250,000, what is the annual county tax
bill?
Answer: 250,000 divided by 100 = 2,500 X 0.87 = \$2,175

4) If the annual real estate tax bill is \$3,000 and the tax rate is \$1.25 per
\$100 of assessed value, what is the assessed value?
The equation with known variables is noted below:

Assessed value
____ X 1.25 = \$3,000
100

## Multiply both sides of the equation by 100 =

Assessed value X 1.25 = 300,000
Then divide both sides by 1.25
Assessed value = 300,000 divided by 1.25 = 240,000
5) What is the amount of excise tax the seller will pay in North Carolina
if the listing price was \$145,000 and the final sales price was
\$130,000? What will be the entry on the Closing Disclosure?
Answer: 130,000 divided by 500 = \$260
Seller Debit for \$260 (single entry)

6) The listing firm and the selling firm will equally split the 6%
commission paid by the seller based on the final sales price. What
amount will each firm receive if the listing price was \$190,000 and the
sales price was \$189,000?

## Answer: 189,000 x 6% = 11,340 divided by 50% = \$5,670

7) If the seller will pay a 5% commission, what will the seller receive
after paying the commission on a sales price of \$80,000?

Sales price X (100-commission rate) = seller receives
80,000 X 95% = 76,000

8) What is the commission rate if the seller wants to net \$90,000 with a
sales price of \$100,000?

Sales price X (100-commission rate) = seller receives
100,000 (100-commission rate) = 90,000
Divide both sides of the equation by 100,000
90,000 ÷100,000 = .90 X 90%
90% received means seller paid a 10% commission
Or:
100,000 – 90,000 = 10,000 / 100,000 = .10 X 100 = 10%

## 9) Percentage leases call for a fixed base monthly rent plus a

percentage of gross sales income exceeding a stated monthly or
annual amount.

## The lease requires a fixed amount of \$1,300 monthly plus 5% of

annual sales that exceeds \$160,000. What is the annual rent if
annual sales are \$250,000?
Answer: Fixed amount of \$1,300 per month +
5% of annual sales that exceeds
\$160,000.
1,300 x 12 = 15,600 annual base rent

## 250,000 – 160,000 = 90,000 X 5% = 4,500

4,500 + 15,600 (base) = \$20,100

## 10) If a property manager receives a commission of 8% based on the

monthly rent, what is the annual commission if the office rents for
\$475 per month.

## Answer: Office rents for \$475 per month & commission is 8%

475 X 12 = 5,700 X 8 % = \$456 annual commission
11) The buyer is putting 15% down on a property with a sales price of
\$90,000. What is the loan amount?

## Or: 90,000 X 15% = 13,500

90,000 – 13,500 = 76,500

12) The lender is providing a loan that represents 90% of the sales price.
What is the borrower’s down payment if the sales price is \$200,000?

## Or: 200,000 X 90% = \$180,000

200,000 – 180,000 = \$20,000

13) The borrower makes \$4,000 per month. If the lender allows a housing
debt ratio up to 30% of the borrower’s gross monthly income, what is
the maximum amount of housing debt allowed?

## Answer: 4,000 X 30% = \$1,200

14) If the property sold for \$100,000, what is the percentage of gross
profit if the original sales price was \$80,000?

## Answer: 100,000 – 80,000 = \$20,000

20,000 divided by 80,000 = .25 X 100 = 25%

15) If the seller originally purchased the property for \$120,000, what was
the selling price if the seller had a 20% loss?

Answer: A 20% loss means the seller only received 80% of the
original purchase price.

Or:

## 120,000 X 20% = 24,000

120,000 – 24,000 = 96,000