Kenneth receives a 6% commission on all of his real estate sales. Half of his commission goes to his broker. What is Kenneth’s part of the commission on $250,000 in sales?
Explanation
Answer: E - $7,500.
Considering what Kenneth’s commission is, rather than the entire 6% commission, will make the calculation here easier. Kenneth actually gets 3% commission, after giving the broker his portion. So, our task is to multiply .03 (the decimal for 3%) x $250,000 to get $7,500.
Key Takeaway: Do all simplification that you can prior to doing the calculation. These are little things that can speed you up and give you that tiny edge.
