North Dakota Practice TestReal Estate Math

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.

Updated May 2026 · North Dakota Real Estate Commission exam outline

Practice Questions

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?

A.$11,100
B.$13,100
C.$13,500
D.$14,800

Explanation

Commission = $185,000 x 6% = $11,100. Total costs = $11,100 + $2,000 = $13,100. To solve this, multiply the relevant values: $185,000 and $2,000 at 6%.. The correct answer is $13,100.. This is a common calculation on the North Dakota real estate exam.

Q2. A buyer finances $160,000 at 7% annual interest (interest only). What is the monthly interest payment?

A.$880
B.$920
C.$933
D.$1,120

Explanation

Monthly interest = $160,000 x (7% / 12) = $160,000 x 0.005833 = $933.33, approximately $933. To solve this, multiply the relevant values: $160,000 at 7%.. The correct answer is $933.. This is a common calculation on the North Dakota real estate exam.

Q3. A 7,500 sq ft commercial lot sells for $3.50 per sq ft. What is the total sales price?

A.$22,500
B.$24,500
C.$26,250
D.$28,000

Explanation

Sales price = 7,500 sq ft x $3.50/sq ft = $26,250. Using the values given ($3.50), apply the appropriate formula.. The correct answer is $26,250.. This is a common calculation on the North Dakota real estate exam.

Q4. A property's NOI is $28,800 per year. The capitalization rate is 8%. What is the estimated value using the income approach?

A.$320,000
B.$350,000
C.$360,000
D.$400,000

Explanation

Value = NOI / Cap Rate = $28,800 / 0.08 = $360,000. To solve this, multiply the relevant values: $28,800 at 8%.. The correct answer is $360,000.. This is a common calculation on the North Dakota real estate exam.

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?

A.$6,000
B.$7,200
C.$14,400
D.$8,640

Explanation

Total commission = $240,000 x 6% = $14,400. Each broker's share = $14,400 / 2 = $7,200. To solve this, multiply the relevant values: $240,000 at 6%.. The correct answer is $7,200.. This is a common calculation on the North Dakota real estate exam.

Q6. A property's assessed value is $180,000. The tax rate is 25 mills. What is the annual property tax?

A.$3,500
B.$4,500
C.$4,250
D.$5,000

Explanation

1 mill = $1 per $1,000 of assessed value. Tax = $180,000 x (25/1,000) = $180,000 x 0.025 = $4,500. Using the values given ($180,000), apply the appropriate formula.. The correct answer is $4,500.. This is a common calculation on the North Dakota real estate exam.

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)?

A.8.57
B.9.52
C.10.48
D.11.43

Explanation

Annual gross rent = 6 units x $700/month x 12 months = $50,400. GRM = $480,000 / $50,400 = 9.52.52. 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)

A.0.55 acres
B.0.69 acres
C.0.75 acres
D.0.88 acres

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?

A.14%
B.16%
C.18%
D.20%

Explanation

Appreciation = ($236,000 - $200,000) / $200,000 = $36,000 / $200,000 = 0.18 = 18%. Using the values given ($200,000, $236,000), apply the appropriate formula.. The correct answer is 18%.. This is a common calculation on the North Dakota real estate exam.

Q10. An investor wants a 10% return on a property generating $36,000 annual NOI. What is the maximum they should pay?

A.$280,000
B.$320,000
C.$360,000
D.$400,000

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?

A.$487.50
B.$650.00
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