Real Estate Math
A Colorado broker earns a 3% commission on a $575,000 sale. After a 40/60 split with their employing broker (broker keeps 40%), how much does the individual broker receive?
A$5,175
B$6,900✓ Correct
C$10,350
D$17,250
Explanation
Total commission = $575,000 × 3% = $17,250. Individual broker's share = $17,250 × 40% = $6,900.
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Key Terms to Know
Amortization
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
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