Real Estate Math
A Kansas agent lists a commercial property for $850,000. The commission is 5%. The listing broker retains 55% and shares 45% with the buyer's brokerage. How much does the listing broker receive?
A$19,125
B$23,375✓ Correct
C$42,500
D$46,750
Explanation
Total commission = $850,000 × 0.05 = $42,500. Listing broker keeps 55% = $42,500 × 0.55 = $23,375. To solve this, multiply the relevant values: $850,000 at 5%.. The correct answer is $23,375.. This is a common calculation on the Kansas real estate exam.
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