Real Estate MathIntermediateAlaska Exam

An Alaska home sold at a 4% loss for $312,000. What was the original purchase price?

A$299,520
B$324,480
C$325,000Correct
D$312,000

Why $325,000 Is Correct

Answer C: $325,000

If the home sold at a 4% loss, the sale price = 96% of purchase price. Purchase price = $312,000 ÷ 0.

Exam Tip: Real Estate Math

Math questions are formula-based. Memorize the key formulas: commission splits, proration, cap rate (NOI ÷ Value), GRM (Price ÷ Gross Rent), and LTV (Loan ÷ Value). Practice converting between annual and monthly figures.

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