Real Estate MathIntermediateNorth Carolina Exam

A seller in NC wants to net $400,000 after paying a 6% commission. What must the sale price be (rounded to nearest dollar)?

Q: A seller in NC wants to net $400,000 after paying a 6% commission. What must the sale price be (rounded to nearest dollar)?

Net = SP x (1 - 0.06) = SP x 0.94. SP = $400,000 / 0.94 = $425,531.91, rounded to $425,532. To solve this, multiply the relevant values: $400,000 at 6%.. The correct answer is $425,531.. This is a common calculation on the North Carolina real estate exam.

A$424,000

B$425,531Correct

C$426,000

D$427,654

Why $425,531 Is Correct

Answer B: $425,531

Net = SP x (1 - 0.06) = SP 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

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.

Debt-to-Income Ratio (DTI)

A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.

Math Concepts

Commission Calculation

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