Real Estate Math

An Indiana commission agreement pays the broker 5% on the first $200,000 and 3% on amounts above $200,000. What is the commission on a $350,000 sale?

A$14,000
B$14,500✓ Correct
C$15,000
D$15,500

Explanation

First $200,000: 5% × $200,000 = $10,000. Above $200,000: 3% × $150,000 = $4,500.

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