Real Estate Math

A New Mexico home sells for $425,000. The seller pays a 6% commission. What is the total commission?

A$21,250
B$25,500✓ Correct
C$42,500
D$51,000

Explanation

$425,000 × 0.06 = $25,500. This is the total commission paid by the seller at closing. To solve this, multiply the relevant values: $425,000 at 6%.. The correct answer is $25,500.. This is a common calculation on the New Mexico real estate exam.

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