All questions
Question 1
A $1,200,000 condo uses tiered commission; total split 50/50, and agent gets 65% of their broker. Agent earns?
- Total = $46,000; $46,000 \times 65% = $29,900
- Total = $46,000; broker = $46,000 \div 2 = $23,000; agent = $23,000 \times 65% = $14,950 (correct answer)
- Total = $48,000; broker = $24,000; agent = $24,000 \times 65% = $15,600
- Total = $60,000; broker = $30,000; agent = $30,000 \times 65% = $19,500
Explanation: This question tests the ability to calculate agent's earnings in a multi-level split with tiered commissions. Understanding requires sequencing total, broker split, then agent's percentage. In this scenario, $46,000 split to $23,000 per broker, agent 65% of $23,000 is $14,950. For example, agent's share is from their broker's portion. Choice B is correct because it follows the proper sequence to $14,950. Choice A is incorrect as it applies 65% to total. Teaching strategies include layered examples and step verification.
Question 2
A small business sells for $500,000 with a flat $30,000 commission; split 50/50 between brokers. Each broker receives?
- $500,000 \times 6% = $30,000; each = $15,000
- Flat commission = $30,000; $30,000 \div 2 = $15,000 (correct answer)
- Flat commission = $30,000; $30,000 \div 3 = $10,000
- Flat commission = $30,000; $30,000 \times 50% = $30,000
Explanation: This question tests the ability to split flat commissions in business sales. Understanding flat fees involves direct division without percentage calculations. In this scenario, $30,000 flat split 50/50 gives $15,000 each. For example, flat means fixed amount. Choice B is correct because it divides $30,000 by 2 accurately. Choice A is incorrect as it unnecessarily computes a percentage. Teaching strategies include distinguishing flat from percentage and practicing divisions.
Question 3
A $1,200,000 condo pays tiered commission; selling broker gets 45% of total. Selling broker's commission is?
- Total = $46,000; $46,000 \times 55% = $25,300
- Total = $46,000; $46,000 \times 45% = $20,700 (correct answer)
- Total = $48,000; $48,000 \times 45% = $21,600
- Total = $60,000; $60,000 \times 45% = $27,000
Explanation: This question tests the ability to compute a selling broker's uneven share in tiered commissions. Understanding involves total commission calculation followed by percentage application. In this scenario, $46,000 total with 45% for selling broker is $20,700. For example, shares add to 100%. Choice B is correct because it applies 45% to the correct $46,000 total. Choice A is incorrect as it uses 55% instead. Teaching strategies include verifying share percentages sum to 100% and cross-checking calculations.
Question 4
A $350,000 home sells at 6%; brokers split evenly, and listing agent receives 60% of listing broker. Agent earns?
- $350,000 \times 6% = $21,000; $21,000 \div 2 = $10,500; $10,500 \times 60% = $6,300 (correct answer)
- $350,000 \times 6% = $21,000; $21,000 \times 60% = $12,600
- $350,000 \times 3% = $10,500; $10,500 \times 60% = $6,300
- $350,000 \times 6% = $2,100; $2,100 \div 2 = $1,050; $1,050 \times 60% = $630
Explanation: This question tests the ability to calculate an agent's earnings from their broker's share. Understanding involves computing total commission, broker split, and then agent's percentage. In this scenario, $21,000 total split to $10,500 for listing broker, with agent getting 60% or $6,300. For example, the agent's share is based on the broker's portion. Choice A is correct because it sequences the calculations properly to $6,300. Choice B is incorrect as it applies 60% to the total commission. Teaching strategies include using flowcharts for multi-step commissions and verifying intermediate totals.
Question 5
A $1,200,000 condo uses tiered commission; 5% first $500,000 and 3% remainder. Commission on remainder equals?
- $500,000 \times 3% = $15,000
- $700,000 \times 5% = $35,000
- $1,200,000 \times 3% = $36,000
- $700,000 \times 3% = $21,000 (correct answer)
Explanation: This question tests the ability to isolate commission on the remainder in a tiered structure. Understanding requires identifying the remainder and applying the specified rate. In this scenario, the remainder is $700,000 at 3%, equaling $21,000. For example, only the amount above $500,000 uses the lower rate. Choice D is correct because it accurately calculates 3% of $700,000 as $21,000. Choice B is incorrect as it applies 5% to the remainder. Teaching strategies include separating tiers clearly and verifying against total commission.
Question 6
A $1,200,000 condo pays tiered commission; 5% first $500,000 and 3% remainder. First-tier commission equals?
- $500,000 \times 5% = $25,000 (correct answer)
- $500,000 \times 3% = $15,000
- $1,200,000 \times 5% = $60,000
- $700,000 \times 5% = $35,000
Explanation: This question tests the ability to compute the first-tier portion of a tiered commission. Understanding involves applying the rate only to the specified initial amount. In this scenario, 5% on first $500,000 equals $25,000. For example, tiers are independent. Choice A is correct because it accurately calculates 5% of $500,000. Choice B is incorrect as it uses the wrong rate of 3%. Teaching strategies include isolating each tier and adding for totals.
Question 7
A property sells for $540,000 with a 5% commission. The commission is split 50/50 between listing and selling brokerages, and each agent receives 80% of their brokerage's share. How much does the listing agent earn?
- $10,800 (correct answer)
- $13,500
- $16,200
- $21,600
Explanation: Total commission = $540,000 × 0.05 = $27,000. Listing brokerage share = $27,000 ÷ 2 = $13,500. Listing agent's share = $13,500 × 0.80 = 10,800.ChoiceB(13,500) is the brokerage's full share before the agent split. Choice C (16,200)usesanincorrectagentsplitpercentage.ChoiceD(21,600) uses an incorrect calculation method. Question 8
An agent's commission split with their broker is 70/30, with the agent receiving the larger portion. If the total commission earned by the brokerage on a sale was $18,600, how much does the agent receive?
- $5,580
- $9,300
- $13,020 (correct answer)
- $15,480
Explanation: The agent receives 70% of the brokerage's $18,600 commission: $18,600 × 0.70 = 13,020.ChoiceA(5,580) incorrectly uses 30% (the broker's share). Choice B (9,300)uses5015,480) uses an incorrect percentage calculation. Question 9
A home sells for $725,000 with a 5% total commission split equally between listing and selling brokerages. If the listing agent receives 85% of their brokerage's share, what does the listing agent earn?
- $15,406.25 (correct answer)
- $18,125.00
- $21,875.00
- $30,812.50
Explanation: Total commission = $725,000 × 0.05 = $36,250. Listing brokerage share = $36,250 ÷ 2 = $18,125. Listing agent's share = $18,125 × 0.85 = 15,406.25.ChoiceB(18,125.00) is the brokerage's full share before agent split. Choice C (21,875.00)usesanincorrectagentsplitcalculation.ChoiceD(30,812.50) uses 85% of the total commission incorrectly. Question 10
A property sells for $315,000 with a 5.5% commission. After paying a $2,000 marketing fee, the remaining commission is split equally between listing and selling brokerages. How much does the listing brokerage receive?
- $7,662.50 (correct answer)
- $8,662.50
- $15,325.00
- $17,325.00
Explanation: Total commission = $315,000 × 0.055 = $17,325. After marketing fee = $17,325 - $2,000 = $15,325. Listing brokerage share = $15,325 ÷ 2 = 7,662.50.ChoiceB(8,662.50) incorrectly calculates the marketing fee deduction. Choice C (15,325.00)isthetotalaftermarketingfeebutbeforethesplit.ChoiceD(17,325.00) is the total commission before marketing fee. Question 11
An agent receives a 60% split of the commission earned by their brokerage. If the brokerage earned $15,000 on a transaction, how much does the agent receive?
- $6,000
- $9,000 (correct answer)
- $12,000
- $25,000
Explanation: The agent receives 60% of the brokerage's $15,000 commission: $15,000 × 0.60 = 9,000.ChoiceA(6,000) incorrectly uses 40% (100% - 60%). Choice C (12,000)uses8025,000) incorrectly adds the split percentage to the commission. Question 12
A property sells for $485,000. The listing agreement specifies a 6% commission with the following split: 3.2% to listing brokerage and 2.8% to selling brokerage. How much more does the listing brokerage earn than the selling brokerage?
- $1,455
- $1,940 (correct answer)
- $2,425
- $2,910
Explanation: Listing commission = $485,000 × 0.032 = $15,520. Selling commission = $485,000 × 0.028 = $13,580. Difference = $15,520 - $13,580 = 1,940.ChoiceA(1,455) uses incorrect commission rate calculations. Choice C (2,425)useswrongpercentagesplits.ChoiceD(2,910) uses an incorrect difference calculation method. Question 13
A selling agent receives 72% of their brokerage's commission and earned $12,960 on a transaction. If the total commission was 6% split equally between listing and selling sides, what was the sale price?
- $600,000 (correct answer)
- $650,000
- $720,000
- $780,000
Explanation: Selling brokerage commission = $12,960 ÷ 0.72 = $18,000. This represents 3% of the sale price (half of 6%). Sale price = $18,000 ÷ 0.03 = 600,000.ChoiceB(650,000) uses an incorrect commission rate calculation. Choice C (720,000)useswrongpercentagedivisions.ChoiceD(780,000) uses an incorrect calculation method. Question 14
A $500,000 business sale pays flat $30,000 commission; listing broker gets 40% and selling broker 60%. Selling broker receives?
- $30,000 \times 40% = $12,000
- $30,000 \times 60% = $18,000 (correct answer)
- $30,000 \div 2 = $15,000
- $500,000 \times 6% = $30,000; selling broker = $15,000
Explanation: This question tests the ability to allocate uneven broker shares in flat commissions. Understanding requires applying percentages to the total flat fee. In this scenario, selling broker gets 60% of $30,000, equaling $18,000. For example, uneven reflects negotiation. Choice B is correct because it computes 60% of $30,000. Choice A is incorrect as it uses 40%. Teaching strategies include percentage allocations and summing checks.
Question 15
A $350,000 residential closing pays 6% commission; brokers split 50/50. Selling broker's commission is?
- $350,000 \times 5% = $17,500; $17,500 \div 2 = $8,750
- $350,000 \times 6% = $21,000; $21,000 \div 2 = $10,500 (correct answer)
- $350,000 \times 6% = $21,000; $21,000 \div 3 = $7,000
- $350,000 \times 0.6% = $2,100; $2,100 \div 2 = $1,050
Explanation: This question tests the ability to determine a selling broker's commission in a 50/50 split. Understanding these calculations requires applying the full rate first and then splitting the total. In this scenario, 6% of $350,000 is $21,000, split to $10,500 for the selling broker. For example, the split is equal, so each gets half. Choice B is correct because it computes the total commission and divides by 2 correctly. Choice A is incorrect as it uses a 5% rate without justification. Teaching strategies include practicing with different rates and splits, and double-checking arithmetic for errors.
Question 16
Two agents co-list a property that sells for $920,000 with a 6% total commission. The listing side receives 3% and the two listing agents split this equally. How much does each listing agent receive if they each have a 75% split with their broker?
- $10,350 (correct answer)
- $13,800
- $20,700
- $27,600
Explanation: Listing side commission = $920,000 × 0.03 = $27,600. Each agent's share before broker split = $27,600 ÷ 2 = $13,800. Each agent receives = $13,800 × 0.75 = 10,350.ChoiceB(13,800) is each agent's share before the broker split. Choice C (20,700)usesanincorrectsplitcalculation.ChoiceD(27,600) is the total listing side commission. Question 17
A property sells for $650,000 with a 5.5% total commission. The commission is divided as follows: listing brokerage 2.75%, selling brokerage 2.75%. If the selling agent receives 65% of their brokerage's commission, how much does the selling agent earn?
- $11,618.75 (correct answer)
- $17,875.00
- $23,212.50
- $35,750.00
Explanation: Selling brokerage commission = $650,000 × 0.0275 = $17,875. Selling agent's share = $17,875 × 0.65 = 11,618.75.ChoiceB(17,875.00) is the brokerage's full commission before the agent split. Choice C (23,212.50)usesanincorrectagentsplitpercentage.ChoiceD(35,750.00) is the total commission for both sides. Question 18
A broker received a total commission of $21,000 on a sale and paid the agent $14,700. What percentage split does the agent receive?
- 65%
- 70% (correct answer)
- 75%
- 80%
Explanation: Agent's percentage = $14,700 ÷ $21,000 = 0.70 or 70%. Choice A (65%) would result in $13,650 agent commission. Choice C (75%) would result in $15,750 agent commission. Choice D (80%) would result in $16,800 agent commission.
Question 19
A $10,000 monthly lease pays 4% annual commission; listing broker keeps 70% and pays agent 30%. Agent receives?
- Annual = $120,000; commission = $4,800; agent = $4,800 \times 30% = $1,440 (correct answer)
- Annual = $120,000; commission = $4,800; agent = $4,800 \times 70% = $3,360
- Monthly commission = $400; agent = $400 \times 30% = $120
- Annual = $120,000; commission = $120,000 \div 4 = $30,000; agent = $9,000
Explanation: This question tests the ability to calculate agent's earnings when broker keeps a portion. Understanding requires applying agent's percentage to total commission. In this scenario, $4,800 total with agent at 30% is $1,440. For example, broker keeps 70%, agent gets 30%. Choice A is correct because it computes 30% of $4,800 correctly. Choice B is incorrect as it calculates broker's share instead. Teaching strategies include role distinctions and percentage checks.
Question 20
A $350,000 home sells at 6% commission; split evenly between brokers. Listing broker receives how much?
- $350,000 \times 6% = $21,000; listing broker = $21,000 \div 2 = $10,500 (correct answer)
- $350,000 \times 6% = $21,000; listing broker = $21,000 \times 60% = $12,600
- $350,000 \times 3% = $10,500; listing broker = $10,500 \div 2 = $5,250
- $300,000 \times 6% = $18,000; listing broker = $18,000 \div 2 = $9,000
Explanation: This question tests the ability to calculate a listing broker's share in an even commission split. Understanding commission calculations involves computing the total and then dividing equally between brokers. In this scenario, 6% of $350,000 is $21,000 total, split evenly to $10,500 for the listing broker. For example, the even split ensures each broker gets half. Choice A is correct because it accurately calculates the total and divides by 2 for the listing broker's $10,500. Choice B is incorrect as it arbitrarily applies 60% to the total without basis. Teaching strategies include emphasizing even splits and checking against the total commission to ensure accuracy.