What is the exam-ready answer?
| Roadmap post | 249 of 500 |
|---|---|
| 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 |
| Content checked through | August 2, 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 |
| Controlling 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 stem gives sale price, loan amount, and assessed value, then asks for LTV. Which two facts control?
- A. Loan and value
- B. Price and tax
- C. Assessed value and millage
- D. Commission and loan
Show answer and explanation →
Answer: A. Loan and value
LTV is loan divided by the value base stated for the ratio. Other numbers can be decoys.
Question 2What should a candidate write before using the online calculator?
- A. Only the largest number
- B. The formula, base, and units
- C. Every answer choice
- D. A memorized market rate
Show answer and explanation →
Answer: B. The formula, base, and units
The setup prevents the calculator from producing a precise answer to the wrong question.
Question 3A problem mixes annual insurance with monthly P and I. What must happen first?
- A. Multiply P and I by 365
- B. Convert annual insurance to monthly
- C. Ignore insurance
- D. Use assessed value
Show answer and explanation →
Answer: B. Convert annual insurance to monthly
All amounts must use the same period before they are added. Divide annual insurance by 12.
Mastery tracking
Mark this calculation mastered only when every statement is 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. Apply the setup method to time-basis questions.
Return to the complete calculation hub, formula sheet, or mixed math drill.