Kentucky Real Estate Exam Math Practice
Master real estate math for the Kentucky PSI exam with commission, proration, loan, and net proceeds practice problems at Kentucky home prices.
Math questions appear on both sections of the Kentucky PSI real estate exam. A small set of formulas covers the vast majority of math questions you'll face. Practice with realistic Kentucky home prices to build speed and accuracy.
Core Formulas
Commission > Commission = Sale Price × Commission Rate
Net to Seller > Net = Sale Price − Commission − Closing Costs − Mortgage Payoff
Loan-to-Value (LTV) > LTV = Loan Amount ÷ Purchase Price
Proration (360-day year) > Daily rate = Annual amount ÷ 360 > Proration = Daily rate × Days elapsed
Appreciation / Depreciation > New Value = Original Value × (1 + Rate)^Years
Practice Problems
Problem 1 — Commission Split
A Louisville home sells for $310,000. The total commission is 5.5%, split 60/40 in favor of the listing broker. The listing sales associate earns 65% of the listing broker's share. How much does the listing sales associate earn?
*Step 1:* $310,000 × 5.5% = $17,050 total commission *Step 2:* $17,050 × 60% = $10,230 to listing broker *Step 3:* $10,230 × 65% = $6,649.50
Problem 2 — Property Tax Proration
Annual property taxes are $2,880. Closing is May 15 (360-day year: 4 months + 15 days = 135 days). Taxes paid in arrears. How much does the seller owe the buyer at closing?
*Step 1:* $2,880 ÷ 360 = $8.00/day *Step 2:* $8.00 × 135 = $1,080 (seller credit to buyer)
Problem 3 — Net Proceeds
A Lexington seller closes on their home for $287,000. They owe $162,000 on their mortgage. Commission is 6%, and closing costs total $4,100. What are the seller's net proceeds?
*Step 1:* Commission = $287,000 × 6% = $17,220 *Step 2:* Net = $287,000 − $17,220 − $4,100 − $162,000 = $103,680
Problem 4 — Down Payment and LTV
A Kentucky buyer purchases a $245,000 home with a 10% down payment. What is the loan amount and LTV ratio?
*Step 1:* Down payment = $245,000 × 10% = $24,500 *Step 2:* Loan = $245,000 − $24,500 = $220,500 *Step 3:* LTV = $220,500 ÷ $245,000 = 90%
Problem 5 — Depreciation
A commercial building in Bowling Green was purchased for $450,000 and uses straight-line depreciation over 39 years. What is the annual depreciation amount?
*Annual depreciation = $450,000 ÷ 39 = $11,538.46/year*
This is the IRS's 39-year schedule for commercial/non-residential property. Residential investment property uses 27.5 years — know both.
Kentucky CE Math
Kentucky CE: 6 hours/year × 2 years = 12 hours per renewal cycle. If a question asks how many CE hours per renewal period, it's 12. If it asks per year, it's 6.
Kentucky License Renewal Math
Kentucky licenses renew in odd years. If a candidate's license expires in 2025, their next renewal is 2027. Questions sometimes test whether candidates know the odd-year renewal cycle.
Tips for Exam Day
- PSI provides an on-screen calculator
- Write out every step on scratch paper
- Re-read whether the question asks for agent's share, broker's share, or total commission
- For net proceeds, subtract all costs including mortgage payoff
Practice more at [CARealestate.com/states/kentucky](https://carealestate.com/states/kentucky).
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