Real Estate Math

A Kansas broker charges a 7% commission on the first $100,000 and 5% on the remainder. A property sells for $280,000. What is the total commission?

A$19,600
B$16,000✓ Correct
C$14,000
D$17,000

Explanation

Commission on first $100,000: $100,000 x 7% = $7,000. Commission on remaining $180,000: $180,000 x 5% = $9,000. Total = $7,000 + $9,000 = $16,000.

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