Commission Formula Commission = (house selling price) x (commission percentage) How to calculate commission  example: If you sell a house for $200,000 with a commission of 5%, the total commission would be $10,000.
How to calculate your sales price when you know the  commission and the commission rate ?	Commission divide bye  Commission Rate = Sales Price  $10,000 / 0.05 = $200,000
How to calculate your commission rate when you know the  commission and the sales price  ?	Commission divide bye  Sales Price  = Commission Rate $10,000 / $200,000 = 0.05 (5%)

Question 1

A house sold for $850,000 with a sales commission rate of 6.5%. The listing broker received 50% of the total commission and the selling broker received 50%. How much would the selling salesperson receive if the selling broker kept 70% and gave 30% to the salesperson?

A. $13,812.5
B. $19,337.5
C. $8,287.5
D. $9,785.5

 

Answer
First we have to figure out the total commission. 6.5% of $850,000 is $55,250

We get this by moving the decimal place over two spaces and multiplying. 0.065 X 850,000 = 55,250

With total commissions of $55,250 the seeing and listing broke split the commission 50/50. 55,250 X .5 = 27,625

At 30% of the selling broker's share ($27,325), the selling

salesperson would receive $27,625 x .3 = $8,287.5

 

Question 2

If a borrower pays $1650 interest per quarter on a straight note of $60,000, the interest rate would be:

A. 6.5%
B. 5.5%
C. 5%
D. 6%


Answer
Remember to default to annual figures.
$1500 * 4 = $6000 ( interest for a year)
$6000 divided by $100,000 = 0.06 (6%)