Real Estate Math
A Michigan agent's annual commission income is $84,000. If the average commission per transaction is $7,000, how many transactions did the agent close?
A10
B12✓ Correct
C14
D16
Explanation
Number of transactions = $84,000 / $7,000 = 12 transactions. Using the values given ($84,000, $7,000,), apply the appropriate formula..
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Key Terms to Know
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.
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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