Real Estate Math
A Montana broker has 15 agents each producing an average of $2.5 million in annual sales volume. At a 3% average commission rate with the broker retaining 30% of all commissions, what is the broker's annual gross income from commissions?
A$337,500✓ Correct
B$1,125,000
C$112,500
D$750,000
Explanation
Total volume = 15 x $2.5M = $37.5M. Total commissions = $37.5M x 0.03 = $1,125,000. Broker retains 30% = $1,125,000 x 0.30 = $337,500.
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