Real Estate Math

A home sells for $425,000 and the broker charges a 5.5% commission. What is the total commission?

A$21,250
B$23,375✓ Correct
C$25,500
D$27,625

Explanation

$425,000 x 5.5% = $425,000 x 0.055 = $23,375. To solve this, multiply the relevant values: $425,000 at 5.5%.. The correct answer is $23,375.. This is a common calculation on the North Carolina real estate exam.

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