Real Estate Math
A home sells for $625,000. The listing agent's brokerage earns a 3% commission and the buyer's agent's brokerage earns 2.5%. What is the total commission paid?
A$15,625
B$18,750
C$34,375✓ Correct
D$31,250
Explanation
Total commission = Sales price × Total commission rate = $625,000 × 5.5% = $625,000 × 0.055 = $34,375. The listing brokerage receives $625,000 × 3% = $18,750 and the buyer's brokerage receives $625,000 × 2.5% = $15,625.
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