What is the exam-ready answer?
| Official syllabus topic | XI Real Estate Calculations: integrated error prevention across all transaction and general concepts |
|---|---|
| Official PSI area | Real Estate Calculations |
| Published weight | 7% of the 100-question national portion |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 2026 |
The Rule
PSI publishes a weight for the complete official area, not a guaranteed count for this individual calculation. Follow the stated facts, units, time basis, and rounding instruction.
Formula and variables
| Symbol or term | Meaning |
|---|---|
| Setup error | A wrong target, base, formula, period, or direction before arithmetic begins |
| Execution error | A conversion, calculator, rounding, or unit mistake after the setup |
| Verification | A magnitude, inverse-formula, balance, or alternate-route check |
Step-by-step method
- Write the target, base, period, direction, and unit.
- Name the formula and cross out decoy numbers.
- Convert percentages and periods before combining amounts.
- Apply statutory rounding and final-answer precision in the correct order.
- Verify by estimation, inverse calculation, debit-credit balance, or a second route.
Georgia-specific distinction
Worked examples
Example 1: One stem, three Georgia bases
Scenario. Price is $400,000, the qualifying note is $320,000, and fair market value is $390,000. The question asks for intangible recording tax.
- Target identifies the qualifying note as the base.
- $320,000 / $500 = 640 units.
- 640 x $1.50 = $960.
Answer. The tax is $960. The price and fair market value are decoys for this target.
Reasonableness check. Transfer tax would use consideration and property tax would first assess fair market value, so neither belongs here.
Example 2: Catch a ratio reversal
Scenario. A $240,000 loan is made on a $300,000 value, and a candidate gets 1.25.
- LTV must be loan / value, not value / loan.
- $240,000 / $300,000 = 0.80, or 80%.
- The 1.25 result came from reversing the ratio.
Answer. Correct LTV is 80%.
Reasonableness check. A loan smaller than value should not produce an LTV above 100%.
Common exam traps
- Starting calculator work before naming the requested answer
- Trusting a familiar-looking answer choice instead of checking the setup
- Memorizing one proration convention as universal
- Treating a precise calculator output as proof that the formula was correct
Original practice questions with detailed explanations
These original instructional questions map to the July 1, 2026 PSI outline. They are not copied from PSI or any live examination. Write the setup before opening the explanation.
Question 1A Georgia home sells for $450,000 with a fair market value of $440,000. The buyer signs a $360,000 qualifying long-term note secured by the home. What is the intangible recording tax?
- A. $360
- B. $720
- C. $1,080
- D. $1,350
Show answer and explanation →
Answer: C. $1,080
The base is the note: $360,000 / $500 = 720 units, and 720 x $1.50 = $1,080. $1,350 uses the sale price, the wrong base for this tax. $720 stops at the unit count and never applies the $1.50 rate.
Question 2A candidate divides a $400,000 value by a $340,000 loan and reports an LTV of 117.6%. What is the correct LTV?
- A. 8.5%
- B. 15.0%
- C. 85.0%
- D. 117.6%
Show answer and explanation →
Answer: C. 85.0%
LTV is loan divided by value: $340,000 / $400,000 = 85%. A loan smaller than the value cannot produce an LTV above 100%, which exposes the reversed ratio. 15% is the down-payment share, not the LTV.
Question 3A fourplex rents for $2,000 per unit each month with no vacancy. Annual operating expenses are $26,000 and the value is $1,100,000. What is the cap rate?
- A. 0.53%
- B. 6.36%
- C. 8.73%
- D. 15.71%
Show answer and explanation →
Answer: B. 6.36%
Annual gross rent is $96,000, so NOI is $70,000 and $70,000 / $1,100,000 = 6.36%. 8.73% divides gross rent by value, the wrong income measure. 0.53% uses one month's NOI against a value tied to annual income.
Ready to move on?
You have this calculation down when all of these are true.
- I can name all ten recurring error types.
- I record whether each miss was setup or execution.
- I know the three major Georgia tax and assessment bases.
- I use at least one independent verification method.
- I can solve mixed questions without a topic label.
Recommended next lesson
Continue with How Much Math Is on the Georgia Exam?. There you will see how PSI weights calculations: 7% of the 100 scored national questions, with more math possible inside the 15-question Georgia Finance and Closing group.
Return to the complete calculation hub, formula sheet, or mixed math drill.