Question
Lee Ann is a salesperson with Hometown Realty which offers a 75/25 split between its salespeople and broker, respectively. If Lee Ann listed home at a 5% commission and the property sold for $520,000, how much commission did Lee Ann earn if she only represented the sellers?
Answers
GPT-4o mini
To calculate Lee Ann's commission from the sale of the home, we first need to determine the total commission based on the sale price and the commission rate.
1. **Calculate the total commission:**
\[
\text{Total Commission} = \text{Sale Price} \times \text{Commission Rate}
\]
\[
\text{Total Commission} = 520,000 \times 0.05 = 26,000
\]
2. **Calculate Lee Ann's share of the commission:**
Since Hometown Realty has a 75/25 split between the salesperson (Lee Ann) and the broker, Lee Ann's share of the commission will be:
\[
\text{Lee Ann's Commission} = \text{Total Commission} \times 0.75
\]
\[
\text{Lee Ann's Commission} = 26,000 \times 0.75 = 19,500
\]
Thus, Lee Ann earned **$19,500** in commission from the sale of the home.
1. **Calculate the total commission:**
\[
\text{Total Commission} = \text{Sale Price} \times \text{Commission Rate}
\]
\[
\text{Total Commission} = 520,000 \times 0.05 = 26,000
\]
2. **Calculate Lee Ann's share of the commission:**
Since Hometown Realty has a 75/25 split between the salesperson (Lee Ann) and the broker, Lee Ann's share of the commission will be:
\[
\text{Lee Ann's Commission} = \text{Total Commission} \times 0.75
\]
\[
\text{Lee Ann's Commission} = 26,000 \times 0.75 = 19,500
\]
Thus, Lee Ann earned **$19,500** in commission from the sale of the home.