Real Estate Math
A Pennsylvania broker charges a 6% commission on all sales. A property sells for $375,000. What is the total commission?
A$20,250
B$22,500✓ Correct
C$18,750
D$25,000
Explanation
Commission = Sale Price × Commission Rate = $375,000 × 6% = $22,500. This is the gross commission before any splits between listing and cooperating brokers and before the broker-salesperson split.
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