Real Estate Math

A Nebraska buyer's agent refers a buyer to an out-of-state agent for a property in Colorado and receives a 25% referral fee on the receiving agent's 3% commission on a $500,000 sale. The referral fee is:

A$3,750✓ Correct
B$1,250
C$3,188
D$2,500

Explanation

Receiving agent's commission = $500,000 × 3% = $15,000. Referral fee = $15,000 × 25% = $3,750. To solve this, multiply the relevant values: $500,000 at 25%.. The correct answer is $3,750.. This is a common calculation on the Nebraska real estate exam.

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