Real Estate Math
A Rhode Island broker lists a property for $550,000. The seller agrees to pay 5% commission. The listing broker and selling broker split the commission 50/50. How much does each broker receive?
A$12,375
B$13,750✓ Correct
C$14,250
D$15,000
Explanation
Total commission: $550,000 x 0.05 = $27,500. Each broker's share: $27,500 / 2 = $13,750. To solve this, multiply the relevant values: $550,000 at 5%.. The correct answer is $13,750.. This is a common calculation on the Rhode Island real estate exam.
Related Rhode Island Real Estate Math Questions
- A Rhode Island homeowner purchased their home for $275,000 and is selling it for $365,000. What is the gross profit?
- A Rhode Island property has a potential gross income of $110,000. After a 7% vacancy rate and a 5% credit loss, what is the effective gross income?
- A Rhode Island appraiser values a home at $325,000. The home's land is worth $75,000 and the building is worth $250,000. The building has 50 years of economic life and is 10 years old. What is the annual depreciation amount?
- A Rhode Island property sells for $460,000. Closing costs are 2% of the sale price (paid by the buyer). What are the buyer's total closing costs?
- A Rhode Island seller pays the realty transfer tax of $2.30 per $500 on a $550,000 sale. How much is the tax?
- A home is listed for $260,000 and sells for $248,000. The total commission is 6%, split 50/50 between listing and buyer's broker. If the listing agent earns 55% of their broker's half, what does the listing agent earn?
- A Rhode Island property has gross rents of $2,400/month. If the GRM is 110, what is the indicated value?
- A Rhode Island home purchased for $250,000 three years ago is now worth $295,000. What is the annual average appreciation rate?
Practice More Rhode Island Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Rhode Island Quiz →