Real Estate Math
An Illinois broker earns 60% of a 5.5% commission on a $425,000 sale. What is the broker's commission?
A$23,375
B$14,025✓ Correct
C$12,750
D$25,500
Explanation
Total commission = $425,000 × 0.055 = $23,375. Broker's share = $23,375 × 0.60 = $14,025. In a typical commission split arrangement, the broker receives a percentage of the total commission earned on the transaction. The remaining 40% ($9,350) would go to the brokerage.
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