Real Estate Math
A broker charges a 5% commission on a $425,000 sale, split evenly between listing and buyer sides. The listing agent earns 60% of the listing side. How much does the listing agent earn?
A$6,375✓ Correct
B$10,625
C$12,750
D$21,250
Explanation
Total commission = 5% of $425,000 = $21,250. Split evenly: listing side = $10,625; buyer side = $10,625. Listing agent earns 60% of listing side: $10,625 times 0.60 = $6,375. This illustrates how commissions flow: total commission splits between brokerages, then each brokerage pays their agent based on the agreed commission split percentage.
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