Real Estate Math

A Louisiana licensee earns a 5.5% commission on a commercial sale of $1,200,000. The licensee's broker retains 45% and the licensee receives the remainder. What is the licensee's gross commission?

A$36,300✓ Correct
B$33,000
C$39,600
D$29,700

Explanation

Total commission: $1,200,000 × 5.5% = $66,000. Licensee receives 55%: $66,000 × 55% = $36,300. To solve this, multiply the relevant values: $1,200,000 at 5.5%.. The correct answer is $36,300.. This is a common calculation on the Louisiana real estate exam.

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