Real Estate Math

A South Dakota listing agreement provides for a 5.5% commission on the first $200,000 and 4% on any amount above $200,000. The property sells for $350,000. What is the total commission?

A$16,000
B$17,000✓ Correct
C$19,250
D$15,000

Explanation

Commission on first $200,000 = $200,000 × 5.5% = $11,000.

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