REAL ESTATE MATH PROBLEMS
(and Solutions)
1. $26,790 is 94% of what amount?
(a) $25,098 (b) $25,182.60 (c) $28,500 (d) $1,607
2.. If you owned a property for 10 years, then sold it for $13,000 with a 10% profit, what did you pay for the house originally?
(a) $11,818 (b) $14,300 (c) $10,700 (d) $15,500
3. 150 is 2 1/2% of what number?
(a) 600 (b) 6,000 (c) 450 (d) 3,750
4. If you borrowed $566.66 at 5% interest, how much interest would you owe for three months?
(a) $7.10 (b) $7.08 (c) $8.15 (d) $85.20
5. The net income from a property is $1,800 per year. What percentage of income is this on a purchase price of $20,000?
(a) 10% (b) 11 % (c) 90% (d) 9%
6. If a property shows a profit of $275 per month and is earning 8% on the total investment, what would the property be worth?
(a) $33,000 (b) $34,000 (c) $41,250 (d) $35,800
7. The value of a house at the end of six years is estimated to be $7,650. What was the original cost of the house if the annual depreciation rate was 2 1/2%?
(a) $9,000 (b) $900 (c) $90,000 (d) $9,600
8. An agent was to receive a commission of 5% on a piece of property listed at $30,000. How much will the agent receive if the owner reduces the selling price by 15%?
(a) $1,350 (b) $2,500 (c) $1,275 (d) $4,500
9. An owner has 24 lots, each containing 1/2 acre. How many lots would there be if the land was divided into 2/3 acre parcels? (a) 16 (b) 32 (c) 8 (d) 18
10. What is the amount of interest on $4,000 for 3 years, 5 months and 20 days at 6 1/2% per annum?
(a) $720 (b) $260 (c) $903 (d) $1,208
11. Jones paid $13,275 for a property, and later offered it for sale at a profit of 10% When the property did not sell, the price was reduced by 5%. The property sold at the lower price and Jones paid a 6% commission. How much did Jones lose?
(a) $234.97 (b) $832.34 (c) $730.12 (d) $1,327.50
12. Jones borrows $12,000 at 6% interest and agrees to repay it at $100 per month, with the payment to be applied first to interest, then to principal. Of the second months payment, how much will be applied to principal?
(a) $40.20 (b) $63.00 (c) $63.20 (d) $215.00
13. If property taxes are $.003 on the dollar and you pay $60.00 per year, what would your annual taxes be if the tax rate were increased to $.0045 on the dollar?
(a) $75 (b) $90 (c) $110 (d) $140
14. If the tax rate is 16 mills for the township and 22 1/2 mills for the schools, how much are the taxes on a property worth $5,000 assessed at 70% of it's value?
(a) $13.48 (b) $134.75 (c) $156.68 (d) $144.38
15. The real value of a property is $6,000. It is assessed at 60% of it's real value and taxed at a rate of 55 mills on assessed value. What are the taxes?
(a) $198.00 (b) $19.80 (c) $1,980.00 (d) $1.98
Click: Real Estate Formulas
