Humber/Ontario Real Estate Course 4 Exam Practice

How should remuneration be calculated if a property sells for $5,430 with a 3.75% remuneration rate?

1. $220,350

2. $144,800

3. $448,000

4. $150,230

5. $276,300

6. $398,200

The correct answer is: $144,800

To determine the correct remuneration from a property sale, you need to apply the remuneration rate to the sale price of the property. In this scenario, the property sells for $5,430 and the remuneration rate is 3.75%. The calculation is as follows: 1. Convert the percentage into a decimal: 3.75% equals 0.0375. 2. Multiply the property sale price by the decimal rate: $5,430 x 0.0375 = $203.625. In practical applications, figures are typically rounded to the nearest whole number. In this case, rounding $203.625 results in $204. However, since this does not align with any of the answer choices, there may be a misunderstanding or miscalculation regarding the sale price or the remuneration rate. The correct understanding of remuneration calculation focuses on the formula of taking the sale price and multiplying it by the remuneration percentage, thereby directly relating the figures in a real-world scenario. The answer provided does not accurately reflect this computation, and it is important to note how to apply these calculations correctly in real estate transactions.