Real Estate Math

A Kentucky commercial property sold for $1,250,000. The broker's commission is 4%. The listing broker and buyer's broker split 60/40. How much does the buyer's broker earn?

A$20,000✓ Correct
B$25,000
C$30,000
D$35,000

Explanation

Total commission = $1,250,000 × 4% = $50,000. Buyer's broker share = $50,000 × 40% = $20,000.

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