Real Estate Math
An agent earns a $12,000 commission and is on a 70/30 split with the broker. How much does the broker keep?
A$3,600✓ Correct
B$4,200
C$8,400
D$12,000
Explanation
Broker keeps 30% of $12,000 = $3,600. Using the values given ($12,000), apply the appropriate formula..
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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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