Term
| Converting Fractions to Decimals
Convert 1/2, 3/4, 5/8 9/3
5 and 1/4 6 and 1/2 |
|
Definition
|
To convert a fraction to a decimal divide the numerator (top number) by the denominator (bottom number)
1/2 = .50 3/4 = .75 5/8 = .6250
9/3 = 3 5 and 1/4 = 5.25
6 and 1/2 6.50
|
|
|
Term
| Many real estate calculations use percentages -such as real estate commissions. |
|
Definition
|
A percentage is a portion of a whole amount.The whole or total always represents 100 percent. For instance, 20 percent means 20 parts of the possible 100 parts that comprise the whole.
|
|
|
Term
| When working with a percentage rate, the percentage must first be converted to decimal. To do this, move the decimal two places to the left and drop the percentage sign. |
|
Definition
|
Example: 20% becomes .20
Or, divide the percentage by 100 and drop the percentage sign.
Example: 20 % becomes 20% divided by 100 = .20 drop the percent sign
|
|
|
Term
| Percentages are sometimes stated as decimals. Move the decimal two places to the right and add percent sign.
Example .20 becomes 20% |
|
Definition
|
Another way to conver a decimal to a percentage rate is to multiply the decimal by 100 and add the percent sign.
Example: .20 x 100 becomes 20%
|
|
|
Term
| There are always 3 parts to a percentage problem. |
|
Definition
|
Percentage Rate = Part / Whole
Part divided by Whole
|
|
|
Term
| A Broker is going to receive a commission of 20% of the sales price on a parcel of land. If the land sells for $230,000, what commission will the broker receive? |
|
Definition
|
Convert the percentage 20% to .20, then multiply sales price by the decimal.
$230,000 x .20 = $46,000
The broker will receive a $46,000 commission!
|
|
|
Term
| Suppose a broker received $23,000 commission on the sale of land where the sales price is $230,000. What percentage rate of the whole did the broker receive? |
|
Definition
|
Divide the part by the whole.
$23,000 divided by $230,000 = 10%
Convert the decimal to a percent
.10 x 100 = 10%
|
|
|
Term
| A Broker received $46,000 commission on the sale of land and the commission rate was 20%. What was the sale price? |
|
Definition
|
Convert percent to decimal.
Divide the part by the percentage rate.
$46,000 divided by .20 = $230,000
|
|
|
Term
| Summary of working with percents! |
|
Definition
|
Part = Whole x Percent
Percent = Part divided by Whole
Whole = Part divided by Percent
|
|
|
Term
| Broker Commission usually set as a percent. How is the saleperson's commission usually set? |
|
Definition
|
As a percentage of the broker's commission. Commission is set by the sell price not the list price.
|
|
|
Term
| Seller lists for $200,000 and agreed to pay the broker a 5% commission. The house sells for 90% of the list price. The listing broker paid the salesperson 50% of her share of the commission. Salesperson received ? |
|
Definition
|
Sales price = .90 x $200,000 = $180,000
Broker commission = .05 x $180,000
Salesperson commission =.50 x $9,000 =
$4500.00
|
|
|
Term
| Buyer has contracted to buy a house for $140,000. The contract calls for the buyer to pay a deposit of 8% of the purchase price at signing. How much is the earnest money deposit? |
|
Definition
|
Deposit = 8% of $140,000 =
.08 x $140,000 = $11,200
|
|
|
Term
| Local property taxes are based on %.
The assessed value of a seller's house is $187,000. The property tax rate in the city is 3.45%. What are the annual taxes? |
|
Definition
|
Taxes = 3.45% of $187,000 =
.0345 x $187,000 = $6,451.50
|
|
|
Term
| Who was born in Liege, Belgium? |
|
Definition
|
HHR born Feb 14 in Liege, Belgium
|
|
|
