Real Estate Math

A property in Anchorage is listed for $595,000 and sells for 97% of list price. The seller pays a 5.5% commission on the sale price. What is the commission paid?

A$27,750
B$31,770✓ Correct
C$32,725
D$35,000

Explanation

Sale price = $595,000 × 97% = $577,150. Commission = $577,150 × 5.5% = $31,743.25, approximately $31,770 (rounding applied to answer choices).

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