COLORADO REAL ESTATE MATH REVIEW NEWEST ACTUAL EXAM WITH
COMPLETE QUESTIONS AND CORRECT VERIFIED ANSWERS (DETAILED
ANSWERS) ALREADY GRADED A+ 100%
The owner of a house has paid the advance water charge for three months beginning
October 1. The owner sold the house, and it closed November 27. How much credit will
the owner receive at closing? The total water bill is $95.
A. 35.1
B. 35.89
C. 36.14
D. 36.94 - <<ANSWER>>36.14
$ days = $1.0326 X 35 days = $36.14
A building sold for $949,000. The total commission was $54,990. What was the rate of
commission?
0.079
0.058
0.062
0.065 - <<ANSWER>>0.058
$54,990 commission / $949,000 sales price = .057945 or 5.80% commission rate
Seller Smith has signed a listing with Broker Barker. Smith agrees to pay a 7%
commission. Barker agrees to use diligence in finding a ready, willing, and able buyer.
When the property goes under contract and has closed, this is an example of:
A. express bilateral executed contract
B. express bilateral executory contract
C. express unilateral executed contract
D. express unilateral executory contract - <<ANSWER>>express bilateral executed
contract
It is in writing making it express, bilateral since its between two parties, and executed
since it is complete
The loan on a property is 80% of the appraised value, and the interest rate is 8% which
amounts to $460 for the first month. Then what is the appraised value of the property?
,A. 95000
B. 68900
C. 72000
D. 86250 - <<ANSWER>>D. 86250
First calculate the annual interest which is $460 X 12 = $5,520 then divide this by 8% =
The loan amount of $69000 then divide this by 80% for the appraised value of the home
$86,250
A property's gross income is $27,600 and has monthly expenses of $550. It has been
valued at $483,000. What is the capitalization rate?
0.0621
0.0529
0.0496
0.0435 - <<ANSWER>>0.0435
$27,600 - ($550 X 12 = $6,600) = $21,000 / $483,000 = .0435 or 4.35%
A building was sold for $115,000. Earnest money in the amount of $15,000 was
deposited, and the buyer obtained a loan for the balance. The lender charged a fee of
2% of the loan. What was the total cash used by the buyer for this purchase?
2180
2300
16300
17000 - <<ANSWER>>17000
$15,000 + 2% of $100,000 = $17,000
A building sold for $949,000. The total commission was $54,990. What was the rate of
commission?
0.079
0.058
0.062
0.065 - <<ANSWER>>0.058
$54,990 commission / $949,000 sales price = .057945 or 5.80% commission rate
The current value of a property is $255,000, and it is assessed at 35% of its current
market value. What is the amount of the real estate tax due on the property if the tax
rate is $3.50 per $100 of assessed value?
2039.99
, 2499
1115.63
3123.75 - <<ANSWER>>3123.75
255,000 x .35 = 89,250.00, 89,250 x .035 = 3,123.75
A broker received a commission for $20,940 for the sale of a $349,000 house. What
was the commission rate?
0.06
0.07
0.08
0.09 - <<ANSWER>>0.06
IRV $20,940 / $349,000 = 6%
A broker sells the NW 1/4 of the SE 1/4 of Section 31, T 4N, R5E P.M. for the owner at
$ 5225.00 per acre. The commission is 5%. The broker must pay 10% of the
commission to the salesman who listed the property. What is the net amount the broker
receives in the sale?
20900
10450
9405
1045 - <<ANSWER>>9405
640 / (4 x 4) = 40 acres X $5,225 = $209,000 x 5% = $10,450 - $1,045 (10%) = $9,405
If the interest for four months on a loan of $80,000 was $3,200, what was the annual
rate of interest?
0.11
0.12
0.13
0.14 - <<ANSWER>>0.12
$3,200 X 3 = $9,600 (annual interest) / $80,000 = 12%
A parcel of land described as "the NW 1/4 and the SW 1/4 of Section 6, T4N, R8W of
the Third Principal Meridian" was sold for $875 per acre. The listing broker will receive a
5% commission on the total sales price. How much will the broker receive?
1750
5040
14000
15040 - <<ANSWER>>14000
