Answer :
Total commission that Lamar got is:
6.5/100×785,000
=$51,025
Amount that Lamar split with his broker:
40/100×51025
=$20410
Amount that brokerage split
=50/100×20410
$10205
Total amount Lamar received $10205
6.5/100×785,000
=$51,025
Amount that Lamar split with his broker:
40/100×51025
=$20410
Amount that brokerage split
=50/100×20410
$10205
Total amount Lamar received $10205
Answer:
Lamar will receive $10,205.
Step-by-step explanation:
Lamar sells another broker's $800,000 listing for $785,000 at a commission rate of 6.5%.
Commission that Lamar got is:
[tex]0.065\times785000=51025[/tex] dollars
Lamar has a 40% commission split with his broker.
So, amount of 40% of $51,025 becomes :
[tex]0.40\times51025=20410[/tex] dollars.
Also given that there is also a 50% brokerage split; so amount after split becomes:
[tex]0.50\times20410=10205[/tex] dollars
Therefore, Lamar will receive $10,205.