What is the exam-ready answer?
| Official syllabus topic | XI Real Estate Calculations: applying transaction and general-concept calculations to scenarios |
|---|---|
| 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 |
|---|---|
| Target | The exact quantity and unit requested in the final sentence |
| Key facts | Only the numbers and rules that feed the selected calculation |
| Direction | Debit or credit, increase or decrease, paid in advance or arrears |
Step-by-step method
- Read the final sentence first and write the requested answer with its unit.
- Read the full stem and label the base, rate, time period, and direction.
- Cross out or set aside numbers that belong to a neighboring formula.
- Write the formula in words and symbols before substituting values.
- Calculate, round only as instructed, and test whether the magnitude and direction make sense.
Georgia-specific distinction
Worked examples
Example 1: Choose between two Georgia tax bases
Scenario. A property sells for $400,000 with a $320,000 qualifying secured note. The question asks for intangible recording tax.
- Target = intangible recording tax in dollars.
- Base = $320,000 note face amount. The $400,000 price is a decoy for this target.
- $320,000 / $500 = 640 units; 640 x $1.50 = $960.
Answer. The intangible recording tax is $960.
Reasonableness check. Using the price would answer a different base question, not the one asked.
Example 2: Decode a buyer-funds stem
Scenario. Price is $275,000, loan is $247,500, buyer costs are $4,200, and earnest money already paid is $3,000.
- Target = additional buyer funds at closing.
- Down payment = $275,000 - $247,500 = $27,500.
- Cash due = $27,500 + $4,200 - $3,000 = $28,700.
Answer. The buyer needs $28,700 more.
Reasonableness check. The existing deposit is a credit, so it must reduce rather than increase the amount still due.
Common exam traps
- Calculating before reading what the question actually asks
- Using every number merely because it appears in the stem
- Ignoring units or mixing annual and monthly amounts
- Choosing debit or credit direction from habit rather than the payment timing stated
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 home sells for $360,000 and appraises at $350,000. The loan is $280,000, the assessed value is $144,000, and the millage rate is 30 mills. The question asks for LTV based on appraised value. What is it?
- A. 20.0%
- B. 77.8%
- C. 80.0%
- D. 194.4%
Show answer and explanation →
Answer: C. 80.0%
The target names its base: $280,000 / $350,000 = 80%. 77.8% divides by the sale price, a decoy the question told you not to use. The assessed value and millage belong to a property-tax question, not this one.
Question 2Price is $260,000 with a $247,000 loan. Buyer costs are $5,100, earnest money of $3,000 was paid, and the seller pays $2,000 of the buyer's costs. How much more must the buyer bring to closing?
- A. $13,100
- B. $15,100
- C. $19,100
- D. $21,100
Show answer and explanation →
Answer: A. $13,100
The down payment is $13,000, so the buyer brings $13,000 + $5,100 - $3,000 - $2,000 = $13,100. $19,100 adds the earnest money that was already paid. $15,100 forgets the seller's contribution.
Question 3A $300,000 sale pays a 6% commission split equally between two brokerages. The listing brokerage pays its salesperson 60% of its share. How much does the listing brokerage keep?
- A. $3,600
- B. $5,400
- C. $9,000
- D. $18,000
Show answer and explanation →
Answer: A. $3,600
The total is $18,000, the listing side gets $9,000, and the salesperson takes $5,400, leaving $3,600 for the brokerage. $5,400 is the salesperson's share, the right math aimed at the wrong target. $9,000 stops before the brokerage pays its salesperson.
Ready to move on?
You have this calculation down when all of these are true.
- I write the target and unit before calculating.
- I identify the exact formula base.
- I can spot and ignore a numerical decoy.
- I label time period and debit-credit direction.
- I perform a magnitude and inverse-formula check.
Recommended next lesson
Continue with 360-Day Versus 365-Day Proration. The next lesson applies this setup to prorations, where the facts to underline are the 360-day or 365-day basis and who owns closing day.
Return to the complete calculation hub, formula sheet, or mixed math drill.