Indiana Real Estate Exam Math Practice

Math questions appear on both the national and state sections of the Indiana real estate exam. You'll see questions on commissions, prorations, loan calculations, and property valuation. The good news: there are only a handful of formulas to master.

Core Formulas to Know

Commission > Commission = Sale Price × Commission Rate

Loan-to-Value (LTV) > LTV = Loan Amount ÷ Purchase Price

Net to Seller > Net = Sale Price − Commissions − Closing Costs − Mortgage Payoff

Proration (360-day method) > Daily rate = Annual amount ÷ 360 > Proration = Daily rate × Number of days

Appreciation / Depreciation > New Value = Original Value × (1 + Rate) > Loss = Original Value × Rate

Practice Problems

Problem 1 — Commission Split

A home sells for $285,000. The total commission is 6%, split 50/50 between listing and buyer's brokers. The listing agent gets 70% of the listing broker's share. How much does the listing agent earn?

*Step 1:* $285,000 × 6% = $17,100 total commission *Step 2:* $17,100 ÷ 2 = $8,550 to listing broker *Step 3:* $8,550 × 70% = $5,985

Problem 2 — Tax Proration

Annual property taxes are $2,400. Closing is June 15 (using 360-day calendar: 5 months and 15 days = 165 days). Taxes are paid in arrears. How much does the seller owe the buyer at closing?

*Step 1:* $2,400 ÷ 360 = $6.67/day *Step 2:* $6.67 × 165 = $1,100.55 (seller credit to buyer)

Problem 3 — Loan-to-Value

A buyer purchases a home for $320,000 and makes a 10% down payment. What is the LTV ratio?

*Step 1:* Down payment = $320,000 × 10% = $32,000 *Step 2:* Loan = $320,000 − $32,000 = $288,000 *Step 3:* LTV = $288,000 ÷ $320,000 = 90%

Problem 4 — Net to Seller

A seller's home sells for $375,000. They owe $210,000 on their mortgage, pay 6% commission, and have $4,500 in other closing costs. What are their net proceeds?

*Step 1:* Commission = $375,000 × 6% = $22,500 *Step 2:* Net = $375,000 − $22,500 − $4,500 − $210,000 = $138,000

Problem 5 — Appreciation

A property purchased for $240,000 appreciated 4.5% annually. What is it worth after 2 years?

*Year 1:* $240,000 × 1.045 = $250,800 *Year 2:* $250,800 × 1.045 = $262,086

Indiana-Specific Math Notes

Indiana trust account rules don't involve math calculations directly, but timeline math matters: deposits within 24 hours of broker receipt. License renewal every 3 years (birthday-based), 12 CE hours per cycle. Know these numbers cold.

Tips for Exam Day

• Bring a calculator — PSI provides one on-screen
• Write out each step; don't skip arithmetic
• Re-read the question before confirming your answer — "how much does the agent earn" vs "how much does the broker earn" are different

For more practice problems visit [CARealestate.com/states/indiana](https://carealestate.com/states/indiana).