Salesperson A earns on a sale of $129,985 with an 8 percent commission. Brokers B (60%) and D (40%) split the commission. If broker B keeps 30 percent of what she received and pays the remainder to Salesperson A, how much does Salesperson A earn on this sale?

Prepare for the Real Estate Math Exam with our comprehensive study materials. Use interactive quizzes and detailed explanations to master the math skills needed in real estate. Be exam-ready today!

Multiple Choice

Salesperson A earns on a sale of $129,985 with an 8 percent commission. Brokers B (60%) and D (40%) split the commission. If broker B keeps 30 percent of what she received and pays the remainder to Salesperson A, how much does Salesperson A earn on this sale?

Explanation:
The amount earned from the sale is split first between two brokers, and then one broker passes a portion of her share to the salesperson. Total commission = 8% of 129,985 = 10,398.80. Broker B gets 60% of the total: 10,398.80 × 0.60 = 6,239.28. Broker D gets 40%: 10,398.80 × 0.40 = 4,159.52 (not needed for the final payout). Broker B keeps 30% of what she received and passes the rest to Salesperson A: 30% of 6,239.28 = 1,871.78 kept by B. The remainder to Salesperson A = 6,239.28 − 1,871.78 = 4,367.50. Salesperson A earns 4,367.50 on this sale.

The amount earned from the sale is split first between two brokers, and then one broker passes a portion of her share to the salesperson.

Total commission = 8% of 129,985 = 10,398.80.

Broker B gets 60% of the total: 10,398.80 × 0.60 = 6,239.28.

Broker D gets 40%: 10,398.80 × 0.40 = 4,159.52 (not needed for the final payout).

Broker B keeps 30% of what she received and passes the rest to Salesperson A:

30% of 6,239.28 = 1,871.78 kept by B.

The remainder to Salesperson A = 6,239.28 − 1,871.78 = 4,367.50.

Salesperson A earns 4,367.50 on this sale.

More Multiple Choice Questions
Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy