Real Estate Math

A Virginia listing contract specifies the agent receives 5% on the first $200,000 and 3% on the balance. The home sells for $350,000. What is the total commission?

A$13,500
B$14,500✓ Correct
C$15,000
D$14,000

Explanation

Commission on first $200,000 = $200,000 × 5% = $10,000. Commission on remaining $150,000 = $150,000 × 3% = $4,500. Total = $14,500.

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