Math Practice for Florida Contractors Exam

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Master Essential Business Math

This section covers the key mathematical concepts you'll encounter on the Florida Contractors Business and Finance Exam. Practice these calculations to build speed and confidence.

Computer Based Math Practice Exam

Essential financial calculations practice

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Calculator (drag to move)
Calculation history will appear here
√: Enter number → click √ | Power: Enter base → click x^y → enter exponent → click = | Memory: MS=Store, MR=Recall, M+=Add, MC=Clear
Example: Present Value Formula Setup
FV ÷ ( 1 + rate ) ^ years
Step-by-Step Calculation Guide

Formula: PV = FV ÷ (1 + r)^n

Example: $50,000 in 3 years at 6%

  1. Convert rate: 6% = 0.06
  2. Add 1: 1 + 0.06 = 1.06
  3. Raise to power: 1.06³ = 1.191016
  4. Divide: $50,000 ÷ 1.191016 = $41,980.96

Calculator: 50,000 ÷ ( 1.06 ^ 3 ) = 41,980.96

Formula: PMT = P × [r(1+r)^n] ÷ [(1+r)^n - 1]

Example: $250,000 loan, 5% annual, 30 years

  1. Monthly rate: 5% ÷ 12 = 0.004167
  2. Total payments: 30 × 12 = 360
  3. Factor: (1.004167)³⁶⁰ = 4.4677
  4. Top: $250,000 × 0.004167 × 4.4677 = $4,653.85
  5. Bottom: 4.4677 - 1 = 3.4677
  6. Payment: $4,653.85 ÷ 3.4677 = $1,342.05

Calculator: 250,000 × 0.004167 × 1.004167^360 ÷ ( 1.004167^360 - 1 ) = 1,342.05

Formula: Units = Fixed Costs ÷ (Selling Price - Variable Cost)

Example: $80,000 fixed, $75 price, $45 variable

  1. Contribution margin: $75 - $45 = $30
  2. Break-even: $80,000 ÷ $30 = 2,666.67
  3. Round up: 2,667 units (can't sell partial)

Calculator: 80,000 ÷ ( 75 - 45 ) = 2,667

Straight-Line: (Cost - Salvage) ÷ Years

Example: $120,000 cost, $20,000 salvage, 10 years

  1. Depreciable amount: $120,000 - $20,000 = $100,000
  2. Annual depreciation: $100,000 ÷ 10 = $10,000

Calculator: ( 120,000 - 20,000 ) ÷ 10 = 10,000

Double-Declining: (2 ÷ Years) × Book Value

Example: $60,000 cost, 5 years

  1. Rate: 2 ÷ 5 = 40%
  2. Year 1: $60,000 × 40% = $24,000

Calculator: 60,000 × ( 2 ÷ 5 ) = 24,000

Example: $25/hr, 40 reg + 8 OT hours

  1. Regular pay: $25 × 40 = $1,000
  2. OT rate: $25 × 1.5 = $37.50
  3. OT pay: $37.50 × 8 = $300
  4. Gross: $1,000 + $300 = $1,300
  5. Taxes (7.65%): $1,300 × 0.0765 = $99.45
  6. Total: $1,300 + $99.45 = $1,399.45

Calculator: ( 25 × 40 ) + ( 25 × 1.5 × 8 ) = 1,300, then 1,300 × 1.0765 = 1,399.45

Percentage Of: 3% of $600,000

  1. Method 1: $600,000 × 0.03 = $18,000
  2. Method 2: $600,000 × 3% = $18,000

Calculator: 600,000 × 3% = 18,000

Current Ratio: $200,000 assets ÷ $80,000 liabilities

  1. Divide: $200,000 ÷ $80,000 = 2.5
  2. Express as ratio: 2.5:1

Calculator: 200,000 ÷ 80,000 = 2.5

Profit Margin: ($450,000 revenue - $270,000 COGS)

  1. Gross profit: $450,000 - $270,000 = $180,000
  2. Margin: $180,000 ÷ $450,000 = 0.40 = 40%

Calculator: ( 450,000 - 270,000 ) ÷ 450,000 = 0.40

Current Yield Formula: Current Yield = Annual Coupon Payment ÷ Current Market Price

Example: $10,000 face value bond, 4% coupon, selling at 98% of face value

  1. Annual coupon payment: $10,000 × 0.04 = $400
  2. Current market price: $10,000 × 0.98 = $9,800
  3. Current yield: $400 ÷ $9,800 = 0.0408 = 4.08%

Calculator: ( 10000 × 0.04 ) ÷ ( 10000 × 0.98 ) = 4.08%

Performance Bond Premium: Premium = Contract Value × Bond Rate

Example: $850,000 contract, 1.5% bond rate

  1. Bond premium: $850,000 × 0.015 = $12,750
  2. As % of 8% profit: $12,750 ÷ ($850,000 × 0.08) = 18.8%

Calculator: 850000 × 0.015 = 12750

Tiered Bond Pricing: Different rates for different contract amounts

Example: $275,000 contract, 1.2% first $100K, 0.8% over $100K

  1. First tier: $100,000 × 0.012 = $1,200
  2. Second tier: ($275,000 - $100,000) × 0.008 = $1,400
  3. Total premium: $1,200 + $1,400 = $2,600

Calculator: ( 100000 × 0.012 ) + ( 175000 × 0.008 ) = 2600

Bond as % of Profit Impact: How bonds affect profitability

Example: $12,750 bond cost on $850,000 contract with 8% profit margin

  1. Expected profit: $850,000 × 0.08 = $68,000
  2. Bond as % of profit: $12,750 ÷ $68,000 = 18.8%
  3. Remaining profit: $68,000 - $12,750 = $55,250

What this means: The bond premium reduces your profit margin from 8% to 6.5%

Formula: FV = PV × (1 + r/n)^(n×t)

Example: $25,000 at 4.5% quarterly for 6 years

  1. Rate per period: 4.5% ÷ 4 = 1.125% = 0.01125
  2. Total periods: 4 × 6 = 24
  3. Factor: 1 + 0.01125 = 1.01125
  4. Growth: (1.01125)²⁴ = 1.3252
  5. Future value: $25,000 × 1.3252 = $33,129

Calculator: 25,000 × ( 1 + 0.045 ÷ 4 ) ^ ( 4 × 6 ) = 33,129

Powers: Enter base → click x^y → enter exponent → =

Example: 1.06^3

Type: 1.06 → click x^y → type 3 → click =

Square Roots: Enter number → click √

Example: √144

Type: 144 → click √

Percentages: Use % button for direct calculation

Example: 3% of 600,000

Type: 600000 × 3% = 18,000

Memory Functions:

  • MS: Store current result
  • MR: Recall stored value
  • M+: Add to stored value
  • MC: Clear memory

Complex Calculations: Use parentheses for order

Example: PMT calculation

Type: 250000 × 0.004167 × 1.004167^360 ÷ ( 1.004167^360 - 1 )

Topics Covered
  • Bond Calculations & Current Yield
  • Performance Bond Premiums
  • Payroll Calculations
  • Depreciation Methods
  • Break Even Analysis
  • Installment Loans
  • Discount Loans
  • Labor Estimation
  • Present Value
  • Financial Ratios
  • Investment Analysis
How This Works

The Florida Contractors Business & Finance Exam includes practical business math calculations such as:

  • Present value and future value calculations
  • Loan payment calculations and interest rates
  • Depreciation methods (straight-line, double-declining)
  • Break-even analysis and profit margins
  • Financial ratios and bond calculations
  • Payroll taxes and labor cost estimation

Yes! You can bring a basic calculator to the exam. However, it must be:

  • Non-programmable
  • No text storage capability
  • No communication features

The calculator provided here mimics what you can use on the actual exam and includes comma formatting for easier reading of large numbers.

Basic Operations:

  • Click numbers and operators, or use your keyboard
  • Press "=" or Enter to calculate
  • Use "C" to clear or Escape key
  • Use "⌫" or Backspace to delete last entry

Advanced Functions:

  • Square Root (√): Enter number first, then click √
  • Power (x^y): Enter base, click x^y, enter exponent, click =
  • Percentage (%): 600000 × 3% calculates 3% of 600,000

Basic Example: To calculate 3% of 600,000:
Type: 600000 × 3% =
Result: 18,000

Present Value Example: $50,000 in 3 years at 6%:
Type: 50000 ÷ ( 1.06 ^ 3 ) = 41,980.96
Result: $41,980.96

PMT Example: $250,000 loan, 5% annual, 30 years:
Monthly rate: 0.05 ÷ 12 = 0.004167
Periods: 30 × 12 = 360
Formula: 250000 × 0.004167 × 1.004167 ^ 360 ÷ ( 1.004167 ^ 360 - 1 ) = 1,342.05
Result: $1,342.05

Each practice question includes:

  • Problem Statement: Real-world scenarios you'll encounter
  • Mathematical Formula: Shown using proper notation when applicable
  • Multiple Choice Answers: Just like the actual exam
  • Step-by-Step Explanation: Shows how to solve the problem
  • Topic Classification: Helps identify areas to study

Questions are designed to match the difficulty and format of the actual DBPR exam.

Time Management:

  • Aim for 2-3 minutes per math question
  • Don't spend too long on any single calculation
  • Skip and return to difficult problems

Calculation Tips:

  • Double-check your calculator entries
  • Verify decimal placement in final answers
  • Look for reasonable answer ranges
  • Use estimation to eliminate obviously wrong answers

Reference Strategy: Math formulas are typically found in the Florida Contractors Manual Chapter 3 (Financial Management) and the Builder's Guide to Accounting.