Exam- Colorado Real Estate Math 100% Solved
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
, Exam- Colorado Real Estate Math 100% Solved
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
, Exam- Colorado Real Estate Math 100% Solved
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) =
, Exam- Colorado Real Estate Math 100% Solved
$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