Real Estate Math

A West Virginia salesperson sells a property for $195,000 and earns 3% commission on the first $100,000 and 2.5% on the balance. The total commission earned is:

A$3,000
B$5,375✓ Correct
C$4,875
D$5,875

Explanation

Commission on first $100,000 = $3,000. Commission on remaining $95,000 = $95,000 x 0.025 = $2,375. Total = $3,000 + $2,375 = $5,375.

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