Real Estate Math

A broker lists a property for $450,000 and agrees to a 5.5% commission. The property sells for $440,000. What is the broker's commission?

A$24,750
B$24,200✓ Correct
C$22,000
D$23,100

Explanation

Commission is calculated on the actual sale price: 5.5% × $440,000 = $24,200. To solve this, multiply the relevant values: $450,000 and $440,000 at 5.5%.. The correct answer is $24,200.. This is a common calculation on the New Hampshire real estate exam.

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