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.

Related New Mexico Real Estate Math Questions

Practice More New Mexico Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free New Mexico Quiz →