A property is sold with a broker, where the contract with the salesperson’s broker is 40% of the full commission earned and the total commission is 6%. What is the salesperson's share of the commission?

Study for the Real Estate Math Exam. Practice with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Multiple Choice

A property is sold with a broker, where the contract with the salesperson’s broker is 40% of the full commission earned and the total commission is 6%. What is the salesperson's share of the commission?

Explanation:
The main idea is chaining percentages to get the portion of the sale price that goes to the salesperson. The total commission is 6% of the sale price, and the salesperson receives 40% of that commission. So the salesperson’s share is 0.40 × 6% = 2.4% of the sale price. Turning that into dollars requires knowing the sale price; with an implied sale price that makes 2.4% equal to $5,400, the sale price would be $225,000, and the salesperson’s share would be $5,400. So the correct dollar amount corresponds to 2.4% of the sale price, which matches $5,400. Other options would correspond to different sale prices or different percentage shares.

The main idea is chaining percentages to get the portion of the sale price that goes to the salesperson. The total commission is 6% of the sale price, and the salesperson receives 40% of that commission. So the salesperson’s share is 0.40 × 6% = 2.4% of the sale price. Turning that into dollars requires knowing the sale price; with an implied sale price that makes 2.4% equal to $5,400, the sale price would be $225,000, and the salesperson’s share would be $5,400. So the correct dollar amount corresponds to 2.4% of the sale price, which matches $5,400. Other options would correspond to different sale prices or different percentage shares.

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