Real Estate Math

A Montana ranch sells for $840,000. The listing broker and buyer's broker split the 5% commission equally. If each brokerage then pays their agent a 60/40 split (agent gets 60%), how much does the buyer's agent receive?

A$25,200
B$12,600✓ Correct
C$21,000
D$10,080

Explanation

Total commission = $840,000 x 0.05 = $42,000. Each brokerage receives $21,000. Buyer's agent receives 60% of $21,000 = $12,600.

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