Alaska Real Estate Exam Math: Commission, Cap Rate & Proration

Math questions appear on Alaska's 120-question exam. Here are the key formulas you need.

Commission

Example: Property sells for $425,000. 5.5% commission, split 50/50. Listing agent earns 60%. - Total: $425,000 × 0.055 = $23,375 - Listing side: $11,687.50 - Agent: $11,687.50 × 0.60 = $7,012.50

Capitalization Rate

Example: Rental in Anchorage generates $36,000 NOI. Cap rate is 6.5%. - Value = $36,000 ÷ 0.065 = $553,846

Proration

Example (360-day year): Taxes $4,320. Closing June 30. - Daily: $4,320 ÷ 360 = $12/day - Seller's days (Jan–Jun): 180 days - Seller's credit to buyer: 180 × $12 = $2,160

LTV

Example: $380,000 purchase, $57,000 down. - Loan: $323,000 - LTV: $323,000 ÷ $380,000 = 85% → PMI required

Net to Seller

Example: Seller wants to net $310,000 after 5% commission. - Sale Price = $310,000 ÷ 0.95 = $326,315.79

[Practice Alaska math at CARealestate.com/states/alaska](https://carealestate.com/states/alaska)