Real Estate Math
A Michigan broker's office sold 45 homes last year with an average sale price of $240,000 and average commission rate of 5.5%. What was the office's total annual commission income?
A$495,000
B$540,000
C$594,000✓ Correct
D$450,000
Explanation
Total sales volume = 45 x $240,000 = $10,800,000. Total commissions = $10,800,000 x 0.055 = $594,000.
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