What is the exam-ready answer?
| Official syllabus topic | XI Real Estate Calculations: percentage, rate, ratio, millage, and point conversions |
|---|---|
| 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 |
|---|---|
| Percent | A rate per 100, written with a percent sign |
| Decimal | A rate expressed as a place value used in multiplication |
| Fraction | A numerator divided by a denominator |
Step-by-step method
- Name the starting and requested forms before moving a decimal.
- Divide a percentage by 100 to create a calculation decimal.
- Multiply a decimal by 100 to report a percentage.
- Divide numerator by denominator to convert a fraction.
- Apply named-unit rules separately: one mill is 0.001 and one mortgage point is 1% of the loan.
Georgia-specific distinction
Worked examples
Example 1: Convert a fractional percentage
Scenario. Convert 7.25% to decimal and use it on $480,000.
- 7.25% / 100 = 0.0725.
- $480,000 x 0.0725 = $34,800.
Answer. The decimal is 0.0725 and 7.25% of $480,000 is $34,800.
Reasonableness check. Seven percent is $33,600, so the result should be slightly higher.
Example 2: Convert millage
Scenario. Convert 27.5 mills to a decimal applied to taxable assessed value.
- One mill = 1 / 1,000 = 0.001.
- 27.5 mills = 27.5 / 1,000 = 0.0275.
- 0.0275 = 2.75%.
Answer. 27.5 mills equals 0.0275, or 2.75% of taxable assessed value.
Reasonableness check. The division is by 1,000 because mill means per thousand.
Common exam traps
- Using 7.5 instead of 0.075 in multiplication
- Turning 0.8 into 0.8% instead of 80%
- Treating 30 mills as 30%
- Confusing one mortgage point with one basis point
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 listing agreement sets a 4.75% commission on a $360,000 sale. What is the commission?
- A. $1,710
- B. $17,100
- C. $171,000
- D. $1,710,000
Show answer and explanation →
Answer: B. $17,100
4.75% is 0.0475, and $360,000 x 0.0475 = $17,100. $1,710 moves the decimal one place too far, using 0.00475. $171,000 uses 0.475, which is 47.5%.
Question 2Co-owners hold 5/8 and 3/8 interests. The property nets $296,000 after sale. What is the 5/8 owner's share?
- A. $111,000
- B. $171,680
- C. $177,600
- D. $185,000
Show answer and explanation →
Answer: D. $185,000
5/8 = 5 / 8 = 0.625, and $296,000 x 0.625 = $185,000. $171,680 misreads 5/8 as 0.58 instead of dividing. $111,000 is the 3/8 owner's share.
Question 3A Georgia home's taxable assessed value, after the 40% assessment and exemptions, is $120,000. The millage rate is 28.5 mills. What is the annual tax?
- A. $342
- B. $1,368
- C. $3,420
- D. $34,200
Show answer and explanation →
Answer: C. $3,420
28.5 mills = 28.5 / 1,000 = 0.0285, and $120,000 x 0.0285 = $3,420. $34,200 treats 28.5 mills as 28.5%. $1,368 applies the 40% assessment a second time to a value that is already assessed.
Ready to move on?
You have this calculation down when all of these are true.
- I convert percent to decimal without guessing decimal places.
- I convert decimal to percent and preserve fractional precision.
- I convert common fractions by division.
- I know millage is per thousand and points are percent of loan.
- I estimate the expected magnitude before accepting the calculator result.
Recommended next lesson
Continue with Rounding and Units on Real Estate Exam Math. Once each rate is in the right form, the next lesson covers when to round: carry full precision, round the final answer, and round Georgia's $100 and $500 tax units up.
Return to the complete calculation hub, formula sheet, or mixed math drill.