Arkansas Real Estate Math
Practice Questions & Answers (2026)
Real estate math questions appear on every Arkansas real estate exam and test a focused set of calculations: commission splits, prorations (property tax, rent, interest), loan-to-value ratios, appreciation and depreciation, and area calculations. The Arkansas Real Estate Commission (AREC) does not provide a calculator — but the math is designed to be workable without one if you know the right formulas. Arkansas candidates consistently lose points on proration questions because they apply the wrong day-count convention (360-day vs. 365-day year) or miscalculate the seller's vs. buyer's share. Work through every problem in this section until you can solve each type without hesitation.
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Arkansas Real Estate Math — Practice Questions & Answers
138 questions on Real Estate Math from the Arkansas real estate question bank. First 10 are free — sign up to unlock all 138.
Q1. A property sells for $175,000. The commission rate is 6%. The listing broker and selling broker split the commission 50/50. How much does each broker receive?
Explanation
Total commission = $175,000 × 0.06 = $10,500. Split 50/50: $10,500 ÷ 2 = $5,250 each.
Q2. A seller wants to net $150,000 after paying a 6% commission. What must the property sell for?
Explanation
Net = Sale Price × (1 − commission rate). $150,000 = Sale Price × 0.94. Sale Price = $150,000 ÷ 0.94 = $159,574 (rounded to the nearest dollar).
Q3. A rectangular lot is 150 feet wide and 200 feet deep. How many acres is this lot? (1 acre = 43,560 sq ft)
Explanation
Area = 150 × 200 = 30,000 sq ft. Acres = 30,000 ÷ 43,560 ≈ 0.69 acres.
Q4. A buyer obtains a loan for $200,000 at 7% annual interest. What is the first month's interest payment?
Explanation
Monthly interest = $200,000 × (0.07 ÷ 12) = $200,000 × 0.005833 = $1,166.67.
Q5. Property taxes on a home assessed at $180,000 are $3,600 per year. What is the tax rate expressed as a mill rate?
Explanation
Mill rate = (Annual Taxes ÷ Assessed Value) × 1,000 = ($3,600 ÷ $180,000) × 1,000 = 0.02 × 1,000 = 20 mills.
Q6. A property's capitalization rate is 8% and its net operating income (NOI) is $24,000. What is the estimated value using the income approach?
Explanation
Value = NOI ÷ Cap Rate = $24,000 ÷ 0.08 = $300,000.
Q7. A broker earns a 6% commission on a $275,000 sale. The listing broker and selling broker split the commission 50/50. The listing agent receives 60% of the listing broker's half. How much does the listing agent receive?
Explanation
Total commission: $275,000 × 6% = $16,500. Listing broker's half: $16,500 ÷ 2 = $8,250. Listing agent's 60% share: $8,250 × 60% = $4,950.
Q8. A property's assessed value is $120,000 and the tax rate is 45 mills. What is the annual property tax?
Explanation
One mill = $1 per $1,000 of assessed value. Tax = $120,000 × (45 ÷ 1,000) = $120,000 × 0.045 = $5,400.
Q9. A property's assessed value is $80,000 and the tax rate is 45 mills. What is the annual property tax?
Explanation
Tax = Assessed Value × Mill Rate ÷ 1,000. Tax = $80,000 × 45 ÷ 1,000 = $80,000 × 0.045 = $3,600.
Q10. A seller wants to net $180,000 after paying a 6% commission and $3,000 in closing costs. What must the property sell for (rounded to the nearest dollar)?
Explanation
Net = Sale Price − (Sale Price × 6%) − $3,000. Rearranged: $180,000 + $3,000 = SP × (1 − 0.06), so $183,000 = SP × 0.94. SP = $183,000 ÷ 0.94 ≈ $194,681. Verify: $194,681 × 6% = $11,681 commission; $194,681 − $11,681 − $3,000 = $180,000. ✓
Q11. A seller wants to net $150,000 after paying a 5% commission. What minimum sale price is required (to the nearest dollar)?
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