Real Estate Math
A home is listed at $385,000 and sells for 97% of list price. The seller pays a 5.5% commission on the sale price. What is the commission?
A$21,175
B$20,540✓ Correct
C$18,392
D$22,000
Explanation
Sale price = $385,000 × 97% = $373,450. Commission = $373,450 × 5.5% = $373,450 × 0.055 = $20,539.75, approximately $20,540.
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