Real Estate Math
A Minnesota broker retains 30% of the total commission and pays the listing and selling agents each 35%. On a $450,000 sale at 6%, how much does the broker retain?
A$27,000✓ Correct
B$7,350
C$9,450
D$10,800
Explanation
Total commission = $450,000 x 6% = $27,000. Broker retains 30% = $27,000 x 0.30 = $8,100. Listing agent receives 35% = $9,450. Selling agent receives 35% = $9,450. Total = $8,100 + $9,450 + $9,450 = $27,000. Commission splits between broker and agents are negotiated in the independent contractor agreement.
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