Retake Recovery Practice Set Preview

Use the diagnostic categories on your PSI score report to choose the first weak portion, then narrow by official area. A retake set should repair the reason for each miss rather than replay the same mixed mock. Answer this 10-question public preview here, then continue the complete experience in Pass Georgia.

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Mixed recovery Contracts Agency Practice of Real Estate Property Ownership Financing Valuation Calculations Disclosures Transfer of Title Land Use Property Management State Laws and Rules Real Estate Practice in Georgia Finance and Closing

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1 / 10Study mode: Real Estate Calculations

A seller prepaid a $1,200 annual insurance premium and closing falls exactly at the midpoint of the policy year. The buyer assumes the policy. The adjustment is:

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34% of the real exam is Georgia law. 52 of 152 questions.

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1. A seller prepaid a $1,200 annual insurance premium and closing falls exactly at the midpoint of the policy year. The buyer assumes the policy. The adjustment is:Real Estate Calculations. Open choices and explanation.

A.A $600 credit to the seller for the unused portion
B.A $1,200 credit to the seller for the full premium
C.A $600 credit to the buyer for the used portion
D.No adjustment, since insurance is not prorated

Answer A: A $600 credit to the seller for the unused portion

The seller paid for coverage she will not use, so the buyer reimburses her for the remaining half: $600 credit to the seller, debit to the buyer. Prepaid items credit the seller; items paid in arrears credit the buyer.

Why each choice works or fails

A. Correct. The unused half of a prepaid premium is reimbursed to the seller.
B. Wrong. $1,200 would repay coverage the seller already used.
C. Wrong. A buyer credit applies to an item the seller has not yet paid.
D. Wrong. A prepaid item the buyer takes over is routinely prorated.

Work it through

$1,200 / 2 = $600 unused
Seller prepaid, so credit seller $600 and debit buyer $600

Rule to remember: Prepaid items credit the seller for the unused portion; items paid in arrears credit the buyer.

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2. Paying discount points MOST benefits a borrower who:Real Estate Calculations. Open choices and explanation.

A.Expects to sell or refinance within two years
B.Wants to lower the loan's principal balance
C.Wants the lowest possible cash outlay at closing
D.Keeps the loan long enough to recover the cost

Answer D: Keeps the loan long enough to recover the cost

Points are money paid now for a lower rate over time, so there is a break-even point. A borrower who keeps the loan past it comes out ahead; one who sells or refinances first has simply paid more. Divide the cost of the points by the monthly saving to find that month.

Why each choice works or fails

A. Wrong. A short hold rarely recovers the upfront cost.
B. Wrong. Points buy a lower interest rate; they do not reduce principal.
C. Wrong. Points increase, not reduce, cash needed at closing.
D. Correct. Holding past break-even is what makes points worthwhile.

Rule to remember: Points pay off only if the loan is kept past break-even: cost of points divided by monthly saving.

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3. A seller prepaid this year's transferable HOA dues. At closing, $720 of the prepaid period remains and passes to the buyer. How is it entered on the settlement statement?Real Estate Calculations. Open choices and explanation.

A.Debit seller $720, credit buyer $720
B.Credit seller $720, debit buyer $720
C.Credit seller $720, with no buyer entry
D.No entry, because dues are not prorated

Answer B: Credit seller $720, debit buyer $720

The seller paid for a benefit allocated to the buyer, so the buyer reimburses the seller through a buyer debit and seller credit.

Why each choice works or fails

A. Wrong. Reverses the direction; the seller paid in advance.
B. Correct. The buyer reimburses the seller for the unused $720.
C. Wrong. A proration is double entry; the buyer must be debited.
D. Wrong. Transferable prepaid dues are routinely prorated.

Work it through

Seller already paid: seller is due reimbursement
Buyer receives future benefit: buyer owes reimbursement
Credit seller $720 and debit buyer $720

Rule to remember: For a stated transferable prepaid benefit, credit the payer and debit the recipient of the future benefit.

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4. A borrower earns $90,000 gross annually. Proposed housing expense is $1,900 monthly and other monthly debts are $725. What is total DTI?Real Estate Calculations. Open choices and explanation.

A.2.9%
B.9.7%
C.25.3%
D.35.0%

Answer D: 35.0%

Convert income to monthly first: $90,000 / 12 = $7,500. Total DTI adds housing and other debts, $2,625, and divides by $7,500 for 35 percent. Housing alone gives only the front-end ratio.

Why each choice works or fails

A. Wrong. Mixes monthly debts with annual income ($2,625 / $90,000).
B. Wrong. Uses only the other debts ($725 / $7,500).
C. Wrong. 25.3% is the housing ratio alone.
D. Correct. $2,625 / $7,500 = 35%.

Work it through

$90,000 / 12 = $7,500 gross monthly income
$1,900 + $725 = $2,625 obligations
$2,625 / $7,500 = 35%

Rule to remember: Match monthly obligations with gross monthly income.

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5. A borrower has a $252,000 loan on a property valued at $315,000. What is the loan-to-value ratio?Real Estate Calculations. Open choices and explanation.

A.20%
B.25%
C.80%
D.125%

Answer C: 80%

LTV is the loan divided by the value: $252,000 / $315,000 = 0.80, or 80 percent. Always put the loan on top; the value on top gives 125 percent.

Why each choice works or fails

A. Wrong. 20% is the $63,000 down payment share of value, not LTV.
B. Wrong. 25% divides the $63,000 down payment by the loan.
C. Correct. $252,000 / $315,000 = 80%.
D. Wrong. 125% reverses the ratio: value over loan.

Work it through

$252,000 / $315,000 = 0.80
0.80 x 100 = 80%

Rule to remember: LTV equals loan divided by value.

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6. A home with a $250,000 fair market value is assessed at 40 percent, and the millage rate is 30 mills. What is the annual tax?Real Estate Calculations. Open choices and explanation.

A.$300
B.$3,000
C.$7,500
D.$30,000

Answer B: $3,000

Assessed value is $250,000 x 0.40 = $100,000. A mill is $1 per $1,000, so 30 mills is 0.030. $100,000 x 0.030 = $3,000.

Why each choice works or fails

A. Treats 30 mills as 0.0030, one decimal place too far left.
B. Correct. $100,000 assessed x 0.030 = $3,000.
C. Applies the millage to full market value instead of the 40 percent assessment.
D. Treats 30 mills as 0.30, confusing mills with a percentage.

Work it through

$250,000 x 0.40 = $100,000 assessed value
30 mills = 0.030
$100,000 x 0.030 = $3,000

Rule to remember: Georgia tax: fair market value x 40% = assessed value, then x millage (mills / 1,000).

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7. A buyer purchases for $300,000 with a $270,000 loan and owes $4,200 in buyer closing costs. The $5,000 earnest money already paid is credited at closing. How much more must the buyer bring?Real Estate Calculations. Open choices and explanation.

A.$25,800
B.$29,200
C.$34,200
D.$39,200

Answer B: $29,200

Add what the buyer owes: the $30,000 down payment plus $4,200 in costs is $34,200. Subtract the $5,000 deposit already paid, which is a credit, leaving $29,200 to bring.

Why each choice works or fails

A. Wrong. Subtracts costs from the down payment instead of adding them.
B. Correct. $30,000 + $4,200 - $5,000 = $29,200.
C. Wrong. Ignores the $5,000 deposit already paid.
D. Wrong. Adds the deposit as a debit, double-counting it.

Work it through

Down payment: $300,000 - $270,000 = $30,000
$30,000 + $4,200 - $5,000 = $29,200

Rule to remember: Buyer cash to close equals down payment plus buyer debits minus deposits and credits.

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8. Using a 365-day year, prorate a $5,475 annual amount for 73 days. Round to the cent.Real Estate Calculations. Open choices and explanation.

A.$1,080.00
B.$1,095.00
C.$1,110.21
D.$4,380.00

Answer B: $1,095.00

Divide the annual amount by the stated year to get the daily rate: $5,475 / 365 = $15. Multiply by the days in the period: $15 x 73 = $1,095.00.

Why each choice works or fails

A. Wrong. Counts 72 days instead of 73.
B. Correct. $15 x 73 = $1,095.00.
C. Wrong. Uses a 360-day year ($5,475 / 360 x 73).
D. Wrong. Prorates the other 292 days of the year.

Work it through

$5,475 / 365 = $15 per day
$15 x 73 = $1,095

Rule to remember: Use the year basis stated in the question.

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9. Effective gross income is $108,000. Operating expenses are $31,000, mortgage payments are $18,000, and depreciation is $7,000. What is NOI?Real Estate Calculations. Open choices and explanation.

A.$52,000
B.$59,000
C.$70,000
D.$77,000

Answer D: $77,000

Only the $31,000 operating expenses are subtracted. Debt service and depreciation are excluded from NOI.

Why each choice works or fails

A. Wrong. Subtracts debt service and depreciation too.
B. Wrong. Subtracts mortgage payments, which are not operating expenses.
C. Wrong. Subtracts depreciation, a non-cash tax item.
D. Correct. $108,000 - $31,000 = $77,000.

Work it through

Exclude $18,000 debt service and $7,000 depreciation
$108,000 - $31,000 = $77,000 NOI

Rule to remember: NOI is effective gross income minus operating expenses before financing and depreciation.

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10. Monthly principal and interest is $1,680. Annual property tax is $4,200 and annual homeowners insurance is $1,500. What is PITI?Real Estate Calculations. Open choices and explanation.

A.$1,805
B.$2,030
C.$2,155
D.$7,380

Answer C: $2,155

Monthly tax is $350 and monthly insurance is $125. Add both to $1,680.

Why each choice works or fails

A. Wrong. Omits monthly taxes.
B. Wrong. Omits monthly insurance.
C. Correct. $1,680 + $350 + $125.
D. Wrong. Adds annual tax and insurance to monthly P and I.

Work it through

$4,200 / 12 = $350 tax
$1,500 / 12 = $125 insurance
$1,680 + $350 + $125 = $2,155

Rule to remember: Convert annual taxes and insurance to monthly before adding them to monthly P and I.

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What does this assessment cover?

PSI says a failing score report includes diagnostic strengths and weaknesses by examination type. Translate that evidence into the closest published area, then gather a larger fresh sample before the next attempt.

Question coverage in this assessment
Official content area	Published weight	Questions here	Complete lesson
Real Estate Calculations	7% of the national portion	10	Study Calculations

The Georgia-specific distinction

Keep the national and Georgia subtotals separate. If Georgia is weak, split the work again into Laws and Rules, Georgia Practice, and Finance and Closing rather than reading one general state summary.

Worked result example

If the report points to Georgia and review notes show national-instinct errors, build a Georgia-only set, read the Georgia distinction after each item, and follow with a fresh 52-question simulation.

Common exam traps

Retaking a full practice exam before repairing anything.
Studying only the lowest raw score without considering sample size.
Memorizing questions from the failed attempt.
Booking again because the average improved while one group stayed weak.

Ready to move on?

Score the set before opening notes.
Explain the winning rule without repeating the answer choice.
Classify every miss as knowledge, distinction, wording, math setup, or timing.
Repair the weakest official area, then answer a fresh set on another day.
Move on only when the result is stable and guesses are being marked as gaps.

Recommended next lesson

Use the complete retake recovery plan. Use the result above to choose the first lesson or drill rather than following a generic order.

Assessment integrity

The questions are original and mapped to the current PSI outline. This preview introduces the assessment; the complete version is in Pass Georgia. PSI says practice exams help candidates become familiar with general question types, but they do not replace education and a good practice score does not guarantee an examination outcome. This page reports evidence, not a pass probability.

About this practice set

Facts checked against the current PSI Candidate Information Bulletin and GREC sources.

Are these actual PSI exam questions?

No. Every item is original, written from the current published outline and primary sources. No question is copied, recalled, reconstructed, or represented as a live PSI item.

Does this score predict whether I will pass?

No. One practice result is evidence about this question sample. Use the area breakdown, review guesses as well as misses, and confirm improvement with fresh questions on another day.

What should I do after the result?

Open the explanation for every miss and guess, restate the rule, use the linked repair lesson, then continue with the next lesson: Use the complete retake recovery plan.

Is the assessment free?

Yes. This 10-question preview has no email gate, account requirement, or card. The complete assessment, saved mastery, spaced review, and adaptive recommendations are in Pass Georgia.