A Colorado broker's office has a total annual commission income of $1,200,000. The employing broker receives 30% and the remaining 70% is split equally among 10 associate brokers. How much does each associate broker earn annually?
Why $84,000 Is Correct
Answer B: $84,000
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 Colorado Questions
- A Colorado property sells for $485,000. The listing broker charges a 6% commission, split equally with the buyer's broker. How much does each broker's office receive?Real Estate Math
- A Colorado property is sold for $525,000 with a 5.5% commission. The listing broker and buyer's broker split the commission 50/50. The listing associate receives 60% of their office's share. How much does the listing associate earn?Real Estate Math
- A Colorado broker earns a 5% commission on a $780,000 sale. Their split with the employing broker is 55% to the associate and 45% to the office. How much does the associate earn?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?Real Estate Math
- A Colorado broker's employing broker is responsible for the actions of their associate brokers when:Agency
- In Colorado, the 'Colorado Real Estate Commission's Annual Update Course' content is important for brokers because:Agency
- A Colorado broker changes employing brokers. What must the broker do within 30 days?Colorado License Law
- A Colorado broker who wishes to open their own brokerage office and employ other brokers must first:Colorado License Law
Key Terms to Know
A lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Net Operating Income (NOI)The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Math Concepts
Study This Topic
Practice More Colorado Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Colorado Quiz →