A property in Anchorage sells for $425,000. The commission rate is 5.5%. What is the total commission?
Why $23,375 Is Correct
Answer B: $23,375
Exam Tip: Real Estate Math
Math questions are formula-based. Memorize the key formulas: commission splits, proration, cap rate (NOI ÷ Value), GRM (Price ÷ Gross Rent), and LTV (Loan ÷ Value). Practice converting between annual and monthly figures.
People Also Study
Related Alaska Questions
- A broker in Alaska lists a property at $375,000 and it sells at 98% of list. The commission is 5.5%. What is the total commission?Real Estate Math
- An Alaska agent lists a property for 90 days. The property sells on day 72. The listing broker receives $24,000. If the total commission was 5%, what was the sale price?Real Estate Math
- A commercial property sells for $750,000. The total commission is 6%, split 50/50 between the listing and selling broker. The listing broker pays their salesperson 70% of the listing broker's share. What is the listing salesperson's commission?Real Estate Math
- An Alaska property sells for $500,000. The buyer gets a loan for $400,000. The lender requires an appraisal. The appraiser values the property at $480,000. What is the maximum loan the lender will approve at 80% LTV based on appraised value?Finance
- A property in Fairbanks sells for $285,000. The broker charges a 6% commission. The listing agent and selling agent each receive 50% of the total commission. How much does each agent receive?Real Estate Math
- Having completed this comprehensive Alaska real estate exam preparation, a successful candidate should know that the Alaska Real Estate Commission's website (commerce.alaska.gov/web/cbpl/ProfessionalLicensing/RealEstate.aspx) provides which key resource?Alaska License Law
Key Terms to Know
The gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Math Concepts
Study This Topic
Practice More Alaska Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →