Real Estate Math

A Maine agent lists 6 properties in a quarter. Two sell for $280,000 (5% commission), two sell for $350,000 (5.5% commission), and two sell for $425,000 (5% commission). Total commissions earned by the brokerage are:

Q: A Maine agent lists 6 properties in a quarter. Two sell for $280,000 (5% commission), two sell for $350,000 (5.5% commission), and two sell for $425,000 (5% commission). Total commissions earned by the brokerage are:

2 × $280,000 × 5% = $28,000. 2 × $350,000 × 5.5% = $38,500. 2 × $425,000 × 5% = $42,500. Total = $28,000 + $38,500 + $42,500 = $109,000. Wait, let me recalculate: 2×14,000=$28,000; 2×19,250=$38,500; 2×21,250=$42,500; Total=$109,000.

A$80,300

B$82,100

C$109,000✓ Correct

D$88,500

Explanation

2 × $280,000 × 5% = $28,000. 2 × $350,000 × 5.

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