Real Estate Math
A Louisiana home is under contract for $325,000. The buyer makes a 10% earnest money deposit. How much is the earnest money?
A$3,250
B$32,500✓ Correct
C$16,250
D$6,500
Explanation
Earnest money = $325,000 × 10% = $32,500. To solve this, multiply the relevant values: $325,000 at 10%.. The correct answer is $32,500.. This is a common calculation on the Louisiana real estate exam.
Related Louisiana Real Estate Math Questions
- A property's assessed value is $80,000. The homestead exemption reduces assessed value by $75,000. At 95 mills, what are the annual taxes?
- A Louisiana property's NOI is $67,500. If an investor requires a 7.2% cap rate, what is the maximum they should pay?
- A Louisiana duplex generates $1,400/month from each unit. Annual operating expenses are $8,400. What is the annual NOI if there is no vacancy?
- A Louisiana property manager collected $28,000 in rents. After paying $3,200 for maintenance, $1,800 for insurance, and retaining an 8% management fee, how much is remitted to the owner?
- A Louisiana investor buys a 4-unit apartment for $480,000 with 25% down. The annual NOI is $36,000. What is the cash-on-cash return?
- A Louisiana investor finances $240,000 at 5% annual interest. After the first year's payments, the loan balance has been reduced by $5,000 in principal. The amount paid in interest during the first year was approximately:
- A Louisiana title company charges a recording fee of $25 for the first page and $10 for each additional page of an Act of Sale. If the Act of Sale is 8 pages, what is the recording fee?
- A Louisiana commercial landlord wants to earn $15,000 per year net from a property after paying $4,200 in property taxes, $2,800 in insurance, and a 6% management fee. If the management fee is based on gross rent and the management fee and expenses must be covered, what annual gross rent must be charged? (Ignoring other expenses)
Practice More Louisiana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Louisiana Quiz →