Real Estate Math
A Pennsylvania broker's office monthly expenses are $18,000. The office expects to close $400,000 in commission revenue monthly. What is the expense ratio?
A4.5%✓ Correct
B4%
C5%
D45%
Explanation
Expense ratio = Monthly Expenses ÷ Monthly Revenue = $18,000 ÷ $400,000 = 4.5%.
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