Real Estate Math
An Illinois listing agent receives a 6% commission split 50/50 with the buyer's agent. If the property sells for $375,000, how much does the listing agent's broker receive?
A$7,875✓ Correct
B$22,500
C$5,625
D$12,500
Explanation
Total commission = $375,000 × 0.06 = $22,500.
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Key Terms to Know
Net Operating Income (NOI)
The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
AmortizationThe 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.
Math Concepts
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