Real Estate Math

A broker in Alaska lists a property at $375,000 and it sells at 98% of list. The commission is 5.5%. What is the total commission?

A$18,750
B$20,164
C$20,200✓ Correct
D$20,625

Explanation

Sale price = $375,000 × 98% = $367,500. Commission = $367,500 × 5.5% = $20,212.50. To solve this, multiply the relevant values: $375,000 at 98%.. The correct answer is $20,200.. This is a common calculation on the Alaska real estate exam.

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