Louisiana Practice TestReal Estate Math

Louisiana Real Estate Math
Practice Questions & Answers (2026)

Real estate math questions appear on every Louisiana 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 Louisiana Real Estate Commission (LREC) does not provide a calculator — but the math is designed to be workable without one if you know the right formulas. Louisiana 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.

Practice Questions

Louisiana Real Estate Math — Practice Questions & Answers

154 questions on Real Estate Math from the Louisiana real estate question bank. First 10 are free — sign up to unlock all 154.

Q1. A home sells for $425,000. The seller pays a 5.5% commission. How much is the total commission?

A.$20,625
B.$23,375
C.$25,500
D.$28,500

Explanation

Commission = $425,000 × 0.055 = $23,375.

Q2. A property is assessed at $45,000. The millage rate is 85 mills. What are the annual property taxes?

A.$3,825
B.$3,975
C.$4,125
D.$4,500

Explanation

Property tax = Assessed value × Millage rate ÷ 1,000 = $45,000 × 85 ÷ 1,000 = $3,825.

Q3. An investor purchases a property for $180,000 and sells it 2 years later for $207,000. What is the return on investment (ROI) as a percentage?

A.12%
B.15%
C.18%
D.20%

Explanation

ROI = (Gain ÷ Cost) × 100 = ($207,000 − $180,000) ÷ $180,000 × 100 = $27,000 ÷ $180,000 × 100 = 15%.

Q4. A broker charges a 6% commission on a $350,000 sale. The listing agent receives 60% of the listing broker's share, which is 50% of the total commission. How much does the listing agent earn?

A.$5,040
B.$6,300
C.$7,560
D.$10,500

Explanation

Total commission = $350,000 × 0.06 = $21,000. Listing broker's share = $21,000 × 0.50 = $10,500. Listing agent's share = $10,500 × 0.60 = $6,300.

Q5. A seller nets $195,000 after paying a 6% commission. What was the original sales price?

A.$204,000
B.$207,447
C.$210,000
D.$213,000

Explanation

The seller nets 94% of the sales price (100% − 6%). Sales price = $195,000 ÷ 0.94 ≈ $207,447.

Q6. A property sold for $265,000 at 5.5% commission. The listing and selling brokers split the commission equally and each broker pays their salesperson 50%. How much does the selling salesperson earn?

A.$3,644
B.$3,859
C.$7,288
D.$7,719

Explanation

Total commission = $265,000 × 0.055 = $14,575. Selling broker's share = $14,575 ÷ 2 = $7,287.50. Selling salesperson's share = $7,287.50 × 0.50 ≈ $3,644.

Q7. An income-producing property has a gross monthly rent of $3,800. The GRM for the area is 115. What is the estimated property value?

A.$418,000
B.$437,000
C.$445,000
D.$456,000

Explanation

Property value = Monthly rent × GRM = $3,800 × 115 = $437,000.

Q8. A buyer borrows $175,000 at 7% annual interest. What is the interest portion of the first monthly payment?

A.$979.17
B.$1,020.83
C.$1,145.83
D.$1,225.00

Explanation

Monthly interest = $175,000 × 0.07 ÷ 12 = $12,250 ÷ 12 ≈ $1,020.83.

Q9. A rectangular commercial lot measures 200 feet × 350 feet. How many acres does it contain (1 acre = 43,560 sq ft)?

A.1.40 acres
B.1.61 acres
C.1.84 acres
D.2.00 acres

Explanation

Area = 200 × 350 = 70,000 sq ft. Acres = 70,000 ÷ 43,560 ≈ 1.61 acres.

Q10. A home is purchased for $220,000 with a 20% down payment. What is the loan amount?

A.$44,000
B.$176,000
C.$180,000
D.$198,000

Explanation

Down payment = $220,000 × 0.20 = $44,000. Loan amount = $220,000 − $44,000 = $176,000.

Q11. A property has gross annual income of $48,000, vacancy losses of $2,400, and operating expenses of $18,000. What is the net operating income (NOI)?

A.$24,000
B.$27,600
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