CA Real Estate Real Estate Mathematics 1 — Questions and Answers
Question 1: A property sells for $450,000 and the commission rate is 6%. How much commission is earned?
- $22,500
- $27,000 (Correct answer)
- $30,000
- $18,000
Correct answer: $27,000
$450,000 × 0.06 = $27,000 total commission.
Question 2: If a listing broker and selling broker split the 6% commission equally, how much does each receive on a $350,000 sale?
- $10,500 (Correct answer)
- $21,000
- $12,500
- $7,000
Correct answer: $10,500
$350,000 × 0.06 = $21,000 total commission; split equally = $10,500 each.
Question 3: A lot measures 150 feet by 200 feet. How many square feet does it contain?
- 30,000 sq ft (Correct answer)
- 35,000 sq ft
- 25,000 sq ft
- 40,000 sq ft
Correct answer: 30,000 sq ft
150 × 200 = 30,000 square feet.
Question 4: How many acres are in a parcel that measures 660 feet by 660 feet?
- 5 acres
- 10 acres (Correct answer)
- 1 acre
- 2 acres
Correct answer: 10 acres
660 × 660 = 435,600 sq ft; 435,600 ÷ 43,560 = 10 acres.
Question 5: A property was purchased for $300,000 and sold for $360,000. What is the percentage of profit?
- 15%
- 16.67%
- 20% (Correct answer)
- 25%
Correct answer: 20%
Profit = $60,000; $60,000 ÷ $300,000 = 0.20 = 20%.
Question 6: A seller nets $280,000 after paying a 5% commission. What was the sale price?
- $294,737 (Correct answer)
- $294,000
- $280,000
- $296,000
Correct answer: $294,737
Net = Sale Price × (1 − 0.05); $280,000 ÷ 0.95 = $294,736.84, rounded to $294,737.
CA Real Estate Real Estate Mathematics 1
A property sells for $450,000 and the commission rate is 6%.
How much commission is earned?