Florida Real Estate Practice Exam

Jared has a 70/30 split with his brokerage firm. If he was paid $12,239.50 in commissions from his home sales totaling $538,000, what is his brokerage's commission rate?

1. 2.3%

2. 3.8%

3. 6.5%

4. 7.6%

The correct answer is: 6.5%

The brokerage's commission rate is 6.5%. This can be calculated by taking the $12,239.50 in commissions and dividing it by the total sales of $538,000. The other options are incorrect because 2.3% would be too low of a rate for a brokerage split, 3.8% is lower than the actual rate of 6.5%, and 7.6% is higher than the actual rate. Remember to always check if the numbers make sense in relation to each other when solving math problems.