Humber/Ontario Real Estate Course 3 Exam Practice

When dealing with percentage calculations in real estate, which units are used?

1. The whole, part, rate, and decimal.

2. The rate and the whole.

3. The whole, rate, and part.

4. The part, rate, and decimal.

5. The whole and decimal only.

6. The whole, rate, and quotient.

The correct answer is: The whole, rate, and part.

In percentage calculations within real estate, understanding the terms involved is essential for clarity and accuracy. The correct choice includes the whole, rate, and part, which are the fundamental components of percentage calculations. In this context: - The **whole** refers to the total or complete amount, which represents 100%. - The **rate** is the percentage itself, providing the comparative measure you are working with. For instance, if you are calculating a commission rate, it would be expressed as a percentage of the total sale price. - The **part** represents the specific amount or portion of the whole that corresponds to the rate. For example, if the total sale price of a property is $300,000 and the commission rate is 5%, the part would be the commission earned, which is $15,000. When these three units are combined, they allow for effective calculations of various scenarios, such as determining commissions, taxes, or financing costs in real estate transactions, highlighting their interconnected nature in practical applications. While other choices might include units that have some relevance to numerical and financial calculations, they do not encompass the complete and necessary components for understanding percentage calculations specifically in the context of real estate. Hence, the choice that includes the whole, rate,