Real Estate Math
A Washington broker's listing agreement states they earn 3% of the first $400,000 and 2% of the balance. The home sells for $720,000. What is the commission?
A$18,400✓ Correct
B$20,800
C$22,400
D$23,600
Explanation
Commission on $400,000 = $400,000 × 3% = $12,000. Commission on $320,000 = $320,000 × 2% = $6,400.
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