North Dakota Real Estate Math
Practice Questions & Answers (2026)
Real estate math questions appear on every North Dakota 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 North Dakota Real Estate Commission does not provide a calculator — but the math is designed to be workable without one if you know the right formulas. North Dakota 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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North Dakota Real Estate Math — Practice Questions & Answers
186 questions on Real Estate Math from the North Dakota real estate question bank. First 10 are free — sign up to unlock all 186.
Q1. A property sold for $185,000. The seller paid a 6% commission and $2,000 in other closing costs. What were the seller's total costs?
Explanation
Commission = $185,000 x 6% = $11,100. Total costs = $11,100 + $2,000 = $13,100.
Q2. A buyer finances $160,000 at 7% annual interest (interest only). What is the monthly interest payment?
Explanation
Monthly interest = $160,000 x (7% / 12) = $160,000 x 0.005833 = $933.33, approximately $933.
Q3. A 7,500 sq ft commercial lot sells for $3.50 per sq ft. What is the total sales price?
Explanation
Sales price = 7,500 sq ft x $3.50/sq ft = $26,250.
Q4. A property's NOI is $28,800 per year. The capitalization rate is 8%. What is the estimated value using the income approach?
Explanation
Value = NOI / Cap Rate = $28,800 / 0.08 = $360,000.
Q5. A home sold for $240,000. The listing broker and buyer's broker split the 6% commission equally. How much did each broker receive?
Explanation
Total commission = $240,000 x 6% = $14,400. Each broker's share = $14,400 / 2 = $7,200.
Q6. A property's assessed value is $180,000. The tax rate is 25 mills. What is the annual property tax?
Explanation
1 mill = $1 per $1,000 of assessed value. Tax = $180,000 x (25/1,000) = $180,000 x 0.025 = $4,500.
Q7. An investor purchases a 6-unit apartment building for $480,000. Monthly rent per unit is $700. What is the annual gross rent multiplier (GRM)?
Explanation
Annual gross rent = 6 units x $700/month x 12 months = $50,400. GRM = $480,000 / $50,400 = 9.52. Wait — let me recalculate: $480,000 / $50,400 = 9.52. Correct answer is 9.52 (option B). GRM = Price / Annual Gross Rent.
Q8. A rectangular lot measures 150 feet wide by 200 feet deep. How many acres is this lot? (1 acre = 43,560 sq ft)
Explanation
Area = 150 ft x 200 ft = 30,000 sq ft. Acres = 30,000 / 43,560 = 0.689 acres, approximately 0.69 acres.
Q9. A property was purchased for $200,000 and sold 3 years later for $236,000. What was the percentage appreciation?
Explanation
Appreciation = ($236,000 - $200,000) / $200,000 = $36,000 / $200,000 = 0.18 = 18%.
Q10. An investor wants a 10% return on a property generating $36,000 annual NOI. What is the maximum they should pay?
Explanation
Value = NOI / Cap Rate = $36,000 / 0.10 = $360,000. This is the maximum price to achieve a 10% cap rate.
Q11. A property sells for $325,000. Transfer taxes are $1.50 per $500 of value. What are the transfer taxes?
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