Real Estate Math
A Louisiana agent earned $42,000 in commissions last year. If the average commission rate was 3% of the sale price (buyer's agent side), what was the agent's total production volume?
A$1,260,000
B$1,400,000✓ Correct
C$1,320,000
D$1,180,000
Explanation
Production volume = Commission Earned ÷ Commission Rate = $42,000 ÷ 0.03 = $1,400,000.
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Key Terms to Know
Buyer's Agent
A 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.
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.
Math Concepts
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