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Real Estate Math — Real Estate License practice questions

80 multiple-choice questions and 22 flashcards on Real Estate Math, about 10% of the Real Estate License bank. Every one carries a written rationale.

Written and maintained by Nick Burton · last updated 2026-08-22 · how we write and review questions

What this chapter covers

Real Estate Math is one of 13 chapters in CoStudy's Real Estate License bank, and it holds 80 of the bank's 796 multiple-choice questions — roughly 10% of the total. That proportion is not arbitrary: chapters follow the certifying body's published exam outline, and the number of questions in each is set by that domain's published weight, so the share of your practice time this chapter takes matches the share of the real exam it accounts for.

Studying by chapter is worth doing once you have a diagnostic score. A single overall percentage tells you whether you are close; it does not tell you which domain is dragging. Working a weak chapter in isolation, and re-testing it in isolation, is the fastest way to move a score that has stalled — and it is why the mock exams in CoStudy report by domain rather than as one number.

Free Real Estate Math practice questions

7 questions drawn from this chapter, with the full rationale shown — the controlling principle behind the right answer, and why each wrong option tempts and fails.

Property tax is typically imposed and collected by which level of gov?

  1. Only state government agencies, not any local government body
  2. Federal income tax authority applied to property owners each year
  3. Federal-only, not state or local, taxing authorities in the U.S.
  4. Local governments (city, county, school district) on assessed value

Answer: D — Local governments (city, county, school district) on assessed value

A) State income taxes differ from property tax. B) Property tax is not federal income tax. C) Federal government generally does not levy property tax. D) Correct — local ad valorem tax.

On $250,000 purchase, 20% down, $5,000 earnest already paid, additional cash due (no closing costs):

  1. $5,000 cash needed
  2. $25,000 cash needed
  3. $45,000 cash needed
  4. $50,000 cash needed

Answer: C — $45,000 cash needed

A) That is earnest only. B) Uses 12% down. C) Correct — 50K − 5K. D) Full down, ignores earnest.

A property valued at $250,000 with a 1.2% effective tax rate has annual tax of:

  1. $300 (misapplying the rate to itself, not the property value)
  2. $3,000 ($250,000 multiplied by the decimal rate of 0.012)
  3. $25,000 (using 10% of the property's assessed value)
  4. $1,200 ($100,000 multiplied by the same decimal rate)

Answer: B — $3,000 ($250,000 multiplied by the decimal rate of 0.012)

A) Wrong - misapplies rate. B) Correct - value × rate. C) Wrong - wrong rate. D) Wrong - wrong base.

An anchor tenant in a retail shopping center is BEST described as:

  1. A large brand-name tenant drawing traffic to the center for other tenants
  2. The smallest in-line tenant in the shopping center's overall tenant mix
  3. The parking-lot attendant who is directly employed by the property landlord
  4. The HVAC vendor servicing the shopping center's shared common areas

Answer: A — A large brand-name tenant drawing traffic to the center for other tenants

A) Correct - anchors drive sales. B) Wrong - anchors are largest. C) Wrong - not tenant. D) Wrong - not tenant.

How many acres are in one section of land under the PLSS?

  1. 160 acres, the size of a standard quarter section
  2. 320 acres, the size of a half section of land
  3. 640 acres, one square mile of surveyed section
  4. 1,280 acres, the size of two full sections

Answer: C — 640 acres, one square mile of surveyed section

A) That is a quarter section. B) That is a half section. C) Correct — one section = 1 sq mi = 640 acres. D) That is two sections combined.

A state "real estate commission" typically functions as the state:

  1. Body that owns real estate directly
  2. Agency issuing only licenses, nothing more
  3. Regulator for licensing, enforcement, rules
  4. Body without any rule-making authority

Answer: C — Regulator for licensing, enforcement, rules

A) Not an owner. B) Also enforces. C) Correct — full regulator. D) It has rule-making authority.

A home sells for $400,000 at 6% commission. Total commission is:

  1. $24,000
  2. $40,000
  3. $36,000
  4. $30,000

Answer: A — $24,000

A) Correct — $400,000 × 0.06. B) Uses 10% rate. C) Uses 9% rate. D) Off-by-one calc.

Real Estate Math flashcards

4 cards from the 22 in this chapter.

The NW¼ of the NE¼ of Section 10. How many acres?

40 acres. Section = 640 acres. NE¼ = 160 acres. NW¼ of that = 40 acres.

How is the cost approach calculated?

Reproduction Cost − Accrued Depreciation + Land Value = Property Value.

A rectangular lot is 200 feet deep and contains 0.50 acres. What is the width of the lot?

108.9 feet (0.50 acres = 21,780 sq ft. 21,780 ÷ 200 = 108.9 ft).

An agent earns 60% of a 3% commission on a $500,000 sale. What does the agent earn?

$9,000. Commission: $500,000 × 0.03 = $15,000. Agent share: $15,000 × 0.60 = $9,000.

Practise the full chapter

These are a sample. The full Real Estate Math chapter runs 102 items with per-chapter progress tracking, on the web and in the iOS app.

Open Real Estate License in CoStudy →

Other Real Estate License chapters

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