Real Estate Math

A Hawaii broker has $2,450,000 in listings that sell at an average of 96% of list price with a 5% commission. What is the broker's gross commission income?

AA. $117,600✓ Correct
BB. $122,500
CC. $120,000
DD. $118,500

Explanation

Average sale price = $2,450,000 × 96% = $2,352,000. Commission = $2,352,000 × 5% = $117,600.

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