Real Estate Math
A commission is split 60/40 between the listing and selling brokers on a $500,000 sale at 5% total commission. How much does the listing broker receive?
A$10,000
B$12,500
C$15,000✓ Correct
D$20,000
Explanation
Total commission: $500,000 x 0.05 = $25,000.
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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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