Humber/Ontario Real Estate Course 3 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 3 Exam with our comprehensive quiz. Dive into engaging practice questions that will enhance your understanding and readiness for the test. Elevate your confidence and get ready to ace your exam!

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Calculate the selling price of a property if the remuneration is $5,430 at a rate of 3.75%.

$144,800
$150,230
$220,350
$240,000
$395,000
$448,000

The correct answer is: $144,800

To determine the selling price of a property given the remuneration and the rate, you can use the formula that connects these elements: Selling Price = Remuneration / Commission Rate. In this case, the remuneration is $5,430, and the commission rate is 3.75%, which should be converted to a decimal for calculation purposes (3.75% = 0.0375). Now, substituting the values into the formula: Selling Price = $5,430 / 0.0375 = $144,800. This calculates the correct selling price of the property. The amount accurately reflects the commission earned based on the selling price, making it a crucial calculation for agents and sellers alike in real estate transactions.