Real Estate Math
A New Mexico broker charges 6% on the first $200,000 of a sale price and 3% on anything above $200,000. A property sells for $420,000. What is the total commission?
A$18,600✓ Correct
B$19,200
C$21,600
D$25,200
Explanation
Commission on first $200,000 = $200,000 × 0.06 = $12,000. Amount above $200,000 = $220,000 × 0.03 = $6,600. Total = $12,000 + $6,600 = $18,600.
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