Real Estate MathIntermediateNorth Carolina Exam

A homeowner's property is assessed at $380,000. The county tax rate is $0.72 per $100 of assessed value. The annual property tax is:

Q: A homeowner's property is assessed at $380,000. The county tax rate is $0.72 per $100 of assessed value. The annual property tax is:

Tax = ($380,000 divided by $100) x $0.72 = 3,800 x $0.72 = $2,736. Using the values given ($380,000, $0.72), apply the appropriate formula.. The correct answer is $2,736.. This is a common calculation on the North Carolina real estate exam.

A$2,280

B$2,736Correct

C$3,800

D$1,900

Why $2,736 Is Correct

Answer B: $2,736

Tax = ($380,000 divided by $100) x $0.72 = 3,800 x $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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Key Terms to Know

Capitalization Rate (Cap Rate)

A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.

Amortization

The gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.

Adjustable-Rate Mortgage (ARM)

A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.

Loan-to-Value Ratio (LTV)

The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.

Math Concepts

Property Tax Assessment

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