Real Estate Math

A Colorado listing agreement states the broker will receive 6% of the first $300,000 and 4% on any amount over $300,000. If the property sells for $450,000, what is the total commission?

A$18,000
B$22,000
C$24,000✓ Correct
D$27,000

Explanation

Commission on first $300,000 = $300,000 × 6% = $18,000. Commission on remaining $150,000 = $150,000 × 4% = $6,000.

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