Real Estate Math
A Washington home sells for $540,000 with 5% commission split 50/50. Each broker receives:
A$10,800
B$13,500✓ Correct
C$27,000
D$54,000
Explanation
Total commission = $540,000 × 5% = $27,000. Each broker's share = $27,000 ÷ 2 = $13,500.
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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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