What is the exam-ready answer?
| Official syllabus topic | XI Real Estate Calculations: accurate computation, statutory transfer fees, ratios, time, and measurement units |
|---|---|
| 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 |
|---|---|
| Statutory ceiling | A required round-up of any fractional taxable unit |
| Ordinary rounding | Nearest requested decimal place when no special rule overrides it |
| Unit label | The money, rate, time, distance, or area unit that makes the number meaningful |
Step-by-step method
- Write the requested final unit before starting.
- Identify whether a statute or question requires rounding up, nearest, down, or no rounding.
- Keep full calculator precision through intermediate steps unless a statutory unit must be counted first.
- Round the final amount to the requested precision and attach the correct unit.
- Use an estimate or inverse formula to catch misplaced decimals and unit mismatches.
Georgia-specific distinction
Worked examples
Example 1: Statutory round-up differs from nearest
Scenario. A qualifying Georgia note is $250,001.
- $250,001 / $500 = 500.002 units.
- The fractional part requires 501 units, not 500.
- Tax = 501 x $1.50 = $751.50.
Answer. The intangible recording tax is $751.50.
Reasonableness check. Ordinary nearest-unit rounding would undercount a statutory fractional unit.
Example 2: Preserve intermediate precision
Scenario. A 365-day proration allocates 47 days of a $5,000 annual amount. Round the final money amount to cents.
- Daily rate = $5,000 / 365 = $13.698630...
- Multiply without first rounding: $13.698630... x 47 = $643.835616...
- Round the final result to $643.84.
Answer. The proration is $643.84.
Reasonableness check. Rounding the daily rate too early can change the final cents.
Common exam traps
- Using ordinary nearest rounding where Georgia law says any fraction counts
- Rounding each intermediate step and accumulating error
- Reporting 0.08 when the answer asks for 8%
- Giving square feet when the question asks for acres
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 deed carries taxable consideration of $187,420. What is the transfer tax?
- A. $186.50
- B. $187.40
- C. $187.42
- D. $187.50
Show answer and explanation →
Answer: D. $187.50
After the $1 for the first $1,000, the remaining $186,420 is 1,864.2 units of $100, which rounds up to 1,865, adding $186.50, for $187.50. $187.40 rounds the fractional unit to the nearest whole unit, which undercounts. $186.50 forgets the $1 charge for the first $1,000.
Question 2A 365-day proration allocates 113 days of a $4,200 annual amount. Round only the final answer to the cent. What is the proration?
- A. $1,299.50
- B. $1,300.27
- C. $1,300.63
- D. $1,318.33
Show answer and explanation →
Answer: B. $1,300.27
$4,200 / 365 = $11.506849..., and multiplying the full figure by 113 gives $1,300.27. $1,300.63 rounds the daily rate to $11.51 first, and the error grows with each day. $1,318.33 divides by 360 instead of the stated 365.
Question 3A parcel contains 132,000 square feet. The question asks for acres, rounded to two decimal places. What should be reported?
- A. 3.03 acres
- B. 3.04 acres
- C. 27.27 acres
- D. 132,000 square feet
Show answer and explanation →
Answer: A. 3.03 acres
132,000 / 43,560 = 3.0303, which rounds to 3.03 acres. 3.04 rounds up as if this were a statutory tax unit, but ordinary rounding applies here. 27.27 divides by 4,840, the square yards in an acre.
Ready to move on?
You have this calculation down when all of these are true.
- I identify special statutory rounding before calculating.
- I preserve precision through ordinary intermediate steps.
- I report the exact unit requested.
- I distinguish a decimal rate from a percentage.
- I use estimation to catch order-of-magnitude mistakes.
Recommended next lesson
Continue with Math Formulas to Memorize. There you can review every formula from these lessons on one page, including the Georgia transfer-tax and intangible-tax rules whose round-up units you just practiced.
Return to the complete calculation hub, formula sheet, or mixed math drill.