Real Estate Math
A licensee earned $42,000 in commission income last year. If their brokerage split is 70/30 (agent/broker), how much did the brokerage earn?
A$29,400✓ Correct
B$12,600
C$42,000
D$14,700
Explanation
Brokerage share = $42,000 × 30% = $12,600. Agent share = $42,000 × 70% = $29,400.
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Key Terms to Know
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.
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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