Real Estate Math
A Tennessee broker has 12 agents. Each agent averages $3,800 in commission per month. The broker retains 30% of each agent's commission. What is the broker's monthly retained income?
A$13,680✓ Correct
B$45,600
C$12,000
D$16,000
Explanation
Total monthly commissions = 12 × $3,800 = $45,600. Broker's share = $45,600 × 30% = $13,680.
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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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